SME delinquency rate reaches highest level in 6 years

With unrest stemming from the Middle East, a strong won, and interest rate burdens overlapping, the debt repayment burden on small and mediumsized businesses is growing. A selfemployed business owner running a paint company in Gyeongnam said profitability had worsened due to rising raw material prices and the sharp rise in exchange rates. According to the financial sector on the 22nd, the average delinquency rate for wondenominated loans at the five major commercial banks at the end of last month was 0.51%, and the delinquency rate for small and mediumsized businesses was 0.73%, the highest since January 2020. The ratio of loans classified as fixedorbelow also reached its highest level in the same period, with small and mediumsized businesses at 0.68%. Experts pointed out that small and mediumsized businesses and selfemployed workers, who have less ability to secure financing than large corporations, are more vulnerable to the strong won and interest rate hikes, and stressed the need to expand financial support and management consulting.