Preliminary figures show bank loans classified as substandard or below (SBLs)– substandard, doubtful, or presumed loss–totaled KRW9.7 trillion at the end of 2005, compared with KRW13.9 trillion a year earlier. During the same period, the ratio of SBLs to the total outstanding loans fell to 1.22% from 1.90%.

Aggressive write-offs and disposition of SBLs totaling KRW20.1 trillion during the year and a sharp drop in new SBLs totaling KRW15.9 trillion–compared with KRW26.5 trillion a year earlier–helped to drive SBLs and the SBL ratio lower for 2005.

Of the KRW20.1 trillion SBLs cleaned up during the year, loan write-offs made up KRW5.9 trillion (29.3%), loans reclassified above substandard KRW5.3 trillion (26.3%), and collateral sales and loan collection KRW4.0 trillion (20.1%).

Corporate loans, household loans and credit card receivables classified as SBLs all fell in 2005 from a year earlier. SBL ratios fell from 1.90% to 1.31% for corporate loans, from 1.60% to 0.98% for household loans, and from 5.13% to 2.40% for credit card receivables.

* Please refer to the attached PDF for details.