Less than a year after a debt crisis shook South Korea, concern is growing that souring lending at credit unions risks bringing back distress.
A branch of one of Korea’s biggest such lenders, MG Community Credit Cooperatives, was shut last month when it reported a 60 billion won ($45 million) loss on real estate-related loans. That triggered deposit outflows at the group of lenders on concerns over rising default rates.
And in a sign that more borrowers are finding it harder to repay debt with interest rates rising, MGCCC’s delinquency rates climbed to 6.18% in late June from ...
