Insurance companies’ total loan balances reached 266 trillion Korean won at the end of June, up 1.9 trillion won, or 0.7%, from the previous quarter, the Financial Supervisory Service said on Aug. 28. Household loans rose 1.6 trillion won to 136.1 trillion won, while corporate loans increased 300 billion won to 129.8 trillion won. Credit quality deteriorated most sharply in corporate lending: the overall delinquency rate rose 0.26 percentage points to 1.08%, and the corporate rate climbed 0.41 percentage points to 1.21%. The delinquency rate for small and medium-sized enterprises rose 0.66 percentage points to 1.46%, while the rate for large enterprises fell from 0.81% to 0.71%. The overall non-performing loan ratio increased 0.18 percentage points to 1.31%, with the corporate ratio rising 0.27 percentage points to 1.62%, its highest level in a decade. The Financial Supervisory Service attributed the deterioration to heightened economic volatility, delayed recovery and heavier interest burdens, and said it would guide insurers to strengthen loss-absorbing capacity and asset soundness management.