South Korean banks’ mortgage loan balances rose 21% over three years and six months, but loans with principal or interest overdue by at least one month surged 120%, according to Financial Supervisory Service data submitted to Representative Park Sung-hoon of the People Power Party. Outstanding mortgage loans increased from ₩644.3 trillion at end-2022 to ₩779.2 trillion at end-June this year, while delinquent loans climbed from ₩1 trillion to ₩2.2 trillion. Loans overdue for more than three months reached ₩1.4 trillion, non-performing loans rose to ₩1.7 trillion and loan-loss provisions tripled to ₩900 billion, lifting the coverage ratio from 44.5% to 51.1%. NH Nonghyup Bank had the largest delinquent balance at ₩511.73 billion, while Jeonbuk Bank recorded the highest delinquency rate at 0.95% after large-scale defaults in certain collective loans for newly distributed housing. Rising COFIX and variable mortgage rates are increasing borrowers’ interest burdens. Representative Park said household debt repayment capacity was not keeping pace with loan growth and urged authorities to monitor vulnerable borrowers and collective-loan defaults.