Delinquent installment-loan balances at seven South Korean capital firms rose to 249.6 billion won at the end of June from 197.8 billion won at the end of last year, an increase of 26.2%, even as total installment-loan assets declined by 63.7 billion won to 28.1009 trillion won. The average delinquency rate consequently increased to 0.89% from 0.70%. JB Woori Capital's rate reached 3.62%, the highest among the surveyed firms, while KB Capital's rose to 1.97% and Woori Financial Capital's delinquent balance increased 21.3%. Commercial-vehicle delinquency at five firms rose to 0.72% at the end of May, while construction-equipment delinquency reached 1.43%, more than three times the 0.43% recorded at the end of 2024. The deterioration has been linked to high interest rates, weaker construction and transport activity, and rising fuel, labor, maintenance and other fixed costs affecting self-employed individuals and small business owners. Substandard installment loans increased 13.6% to 351.9 billion won, while provisions rose 8.7% to 483.9 billion won, causing provision coverage to fall to 137.5% from 143.6%.