Last year, the amount of loans owed to insurance companies grew by 3.8 trillion South Korean won from the prior quarter, while the proportion of non-performing loans also increased.
As per the “Status of Insurance Companies’ Loan Receivables as of the End of December 2025” published by the Financial Supervisory Service on the 27th, the amount of loan receivables held by insurance companies at the end of the previous year totaled 265.2 trillion Korean won, representing a 1.5% rise compared to the prior quarter.
Household loan balances reached 134 trillion South Korean won, rising by 700 billion South Korean won (0.5%) compared to the prior quarter, whereas corporate loan balances stood at 131.2 trillion South Korean won, increasing by 3.2 trillion South Korean won (2.5%), indicating a more significant growth.
By the end of December last year, the rate of overdue loans from insurance companies stood at 0.84%, an increase of 0.03 percentage points compared to the prior quarter. Significantly, the delinquency rate for business loans reached 0.83%, rising by 0.04 percentage points from the previous quarter.
In the same period, the proportion of non-performing loans climbed to 1.03%, rising by 0.05 percentage points compared to the prior quarter. The rate of non-performing household loans stayed steady at 0.67% from the previous quarter, whereas the rate of non-performing corporate loans went up to 1.21%, an increase of 0.08 percentage points from the previous quarter.
A representative from the FSS mentioned, “Insurance companies experienced a minor increase in delinquency rates in December of last year when compared to the previous quarter, attributed to increased domestic and international economic instability and a delayed recovery,” and further noted, “We intend to direct insurance companies to improve their ability to absorb losses and reinforce the management of sound assets in anticipation of the possible growth of non-performing loans in the future.”
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