South Korea Card Delinquencies Near $1.7B – Long-Term Arrears Rise
- Report indicates increasing financial strain on vulnerable borrowers amid economic headwinds.
- South Korea is experiencing a notable increase in credit card delinquencies,with long-term overdue balances rising significantly in recent months.
- According to a report by Asia Today, as of the reporting date, the total delinquency balance across eight major card companies reached ample figures.
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South Korea Sees Rise in Credit Card Delinquencies
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Published January 7, 2026, 01:53 AM EST
Report indicates increasing financial strain on vulnerable borrowers amid economic headwinds.
overview
South Korea is experiencing a notable increase in credit card delinquencies,with long-term overdue balances rising significantly in recent months. Data released on January 7, 2026, reveals a collective increase across major card issuers, fueled in part by the ongoing corporate rehabilitation of Homeplus. This trend is raising concerns about the financial health of households, notably those with lower incomes.
Delinquency Balances by Issuer
According to a report by Asia Today, as of the reporting date, the total delinquency balance across eight major card companies reached ample figures. Hyundai Card recorded the highest increase, with 188.1 billion won ($130.1 million) in six-month-plus delinquent debts. The report attributed this surge to the impact of Homeplus entering corporate rehabilitation in March of the previous year.
| Card Issuer | Six-Month-Plus Delinquency Balance (KRW Billion) | Six-Month-Plus Delinquency Balance (USD Million) |
|---|---|---|
| Hyundai Card | 188.1 | 130.1 |
| BC Card | 41.7 | 28.8 |
| Shinhan Card | 98.5 | 68.1 |
| Hana Card | 77.7 | 53.7 |
| KB Kookmin Card | 30.1 | 20.8 |
| Samsung Card | 23.6 | 16.3 |
| Woori Card | 40.9 | 28.3 |
Note: exchange rates as of January 7, 2026, were used for USD conversions.
Economic Factors and Household Debt
Analysts attribute the rising delinquency rates to a confluence of economic factors impacting borrowers’ ability to repay debts. These include a slowing economy, persistently high inflation, and increasing interest rates. These conditions place heavier repayment burdens on vulnerable households, making them more susceptible to falling behind on credit card payments.
experts warn that increasing card delinquencies can serve as an early warning sign for broader issues with household debt.Credit card loans and cash advances are often utilized as emergency funding sources by lower-income households, meaning a rise in defaults in this sector could indicate wider financial distress.
Industry Outlook
Despite the increase, an industry official noted that not all long-term overdue balances are necessarily uncollectible. Card companies are actively managing their receivables and factoring recovery rates into their financial projections. However,the official acknowledged that the rise in delinquencies suggests that household finances have not yet fully recovered from recent economic pressures.