Seoul: Delinquency rates at South Korea's major credit card companies have reached an 11-year high in the first quarter amid an economic slowdown, the central bank said Thursday. The delinquency rate on loan assets at the major card firms stood at 2.3 percent as of the end of March, marking the highest level since 2014.

According to Yonhap News Agency, the report by the Bank of Korea (BOK) indicates that the loan assets encompass card loans, revolving credit, and cash advances, in addition to non-card loans such as project financing (PF) and corporate loans. The delinquency rate on non-card loans, primarily consisting of corporate lending, has seen a significant increase in recent years, reaching 3 percent in the second quarter of this year.

The escalation in delinquency rates is linked to a delayed recovery in domestic demand, affecting sectors such as wholesale, retail, accommodation, and food services. The BOK noted that rising defaults in real estate project financing (PF) have also contributed to higher delinquency rates in the construction and real estate sectors.

The BOK emphasized in the report that borrowers' vulnerability to economic conditions has intensified, particularly concerning card loans. It warned of the heightened risks of further defaults and stressed the need for close monitoring of asset soundness and increased vigilance in financial oversight.