Korea’s Economic Crisis

Korea’s Economic Crisis 🥶🥶 Companies Crumble Without Interest
Bank ‘Can Loan’ Surges / South Koreans Created by President Yoon Seok-yeol

🟦The balance of the four major banks’ non-profit loans is close to KRW 3 trillion
up 27.3% this year

🖍 Non-profitable ️: A loan that does not receive interest, including principal and interest, after a bank lends money

🟦 Bank’s non-profit credit balance

• KRW 2.2772 trillion at the end of 2022
• At the end of the third quarter of 2023, it was KRW 2.8988 trillion, 27.a 3 percent jump

🟦 Corporate loans are more serious than households. “The first half of next year is at a critical juncture.”

🟦 Under the double whammy of economic downturn and high interest rate
Households and businesses that are falling apart without interest after receiving loans from commercial banks have soared

🟦 Impact of rising raw material prices and shrinking consumption
A series of “tin can loans” by companies that have been finally bankrupt or have begun bankruptcy and liquidation procedures

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🟦 Corporate bankruptcy cases filed by courts nationwide (Court Statistics Monthly Report)
1,213 cases as of Q3 2023,

64.4% surge from the same period last year (738 cases)

🟦 Individual bankruptcy filing accumulated 31,12 cases in the third quarter of this year, almost the same as last year (31,26)

🟦 At the end of the third quarter of 2023, the cumulative national bill default amount was KRW 4.15 trillion,
214.9% surge from KRW 1.3202 trillion in the same period last year (Bank of Korea)

🟦 Monthly average national bill default rate from January to September
Tripling from 0.08% in 2022 to 0.25% this year in 2023