The ratio of bank loans classified as substandard or below (SBL ratio) came to 0.78% at end-June, 2007, down from 0.84% at end-2006 and the lowest level since the adoption of forward-looking criteria in 1999.1 A drop in new delinquencies (from KRW6.4 trillion to KRW5.7 trillion) as well as an increase in total outstanding loans (from KRW930.2 trillion to KRW999.5 trillion) during the first half of the year from the second half of 2006 led to the drop in the overall SBL ratio for the period.

By loan type, the SBL ratios fell for corporate and household loans from end-2006, averaging 0.86% and 0.62%, respectively. The ratio for credit card receivables also fell from 1.33% to 1.09% during the same period.

* Please refer to the attached PDF for details.