韩国主要资本公司汽车分期逾期率上升，商用车与工程机械资产质量压力加大

Delinquency rates on installment financing are rising at major South Korean capital firms that handle auto loans. High interest rates have increased repayment burdens on borrowers, and a slump in the construction sector is compounding asset quality pressure in financing for commercial vehicles and construction equipment.
JB Woori Capital's installment financing delinquency rate stood at 3.62% at the end of June, up 0.91 percentage points from 2.71% at the end of last year, according to financial industry sources on the 30th. The figure was also 0.78 percentage points higher than the 2.84% recorded in 2024. The installment financing delinquency rate far exceeded the firm's overall delinquency rate of 2.69% and was higher than that of other financial assets such as loans and leases.
Under installment financing, a financial company pays a seller on behalf of a consumer buying a vehicle or machinery, and the consumer repays the principal and interest in installments over a set period. It is one of the main businesses of capital firms and is heavily concentrated in autos. Of the 47.2014 trillion won in total outstanding installment financing at the end of last year, autos accounted for 45.7704 trillion won, or about 97%, according to the Credit Finance Association.
The increase is showing up at other capital firms as well. KB Capital's installment financing delinquency rate was 1.97% at the end of June, up 0.83 percentage points from 1.14% at the end of last year. That slightly exceeded its overall delinquency rate of 1.93% and was higher than its lease delinquency rate of 1.20%. Woori Financial Capital's rate also rose to 1.26% at the end of June from 1.12% at the end of last year, and was 0.42 percentage points higher than the 0.84% recorded at the end of 2024. Hana Capital's rate edged down to 0.96% at the end of June from 0.99% at the end of last year, but was about three times the 0.35% recorded at the end of 2022.
Analysts attribute the rise to a deterioration in borrowers' repayment capacity amid high interest rates and slowing growth. Used-car financing is particularly exposed because borrowers there have relatively weaker credit profiles, leaving their repayment capacity vulnerable to an economic slowdown or rising rates. Korea Ratings said of JB Woori Capital that "the credit quality of borrowers for products such as used-car financing is inferior, making sensitivity to interest rates and the economy high," adding that "given rising market rates and the trend of economic polarization, downward pressure on asset quality is expected to persist."
The prevalence of borrowers carrying multiple debts is another strain. An official at one capital firm said that "among borrowers using installment financing, quite a few also take out other loans such as unsecured credit loans," adding that "when high interest rates increase the repayment burden on those other loans and delinquencies occur, installment financing can be affected as well."
The delinquency burden is growing more sharply in commercial vehicles and construction equipment, which are closely tied to construction and transport activity. When work in those sectors dries up, borrowers' incomes fall and their capacity to make installment payments declines.
Data obtained by the office of Rep. Kim Sang-hoon of the People Power Party from five firms — Hyundai Capital, Hana Capital, Woori Financial Capital, JB Woori Capital and Meritz Capital — showed their combined commercial vehicle installment financing delinquency rate reached 0.72% at the end of May, up 0.18 percentage points from 0.54% at the end of last year. Commercial vehicle financing covers trucks, dump trucks, concrete mixers and other vehicles used mainly at transport and construction sites.
The increase has been steeper in construction equipment. The five firms' delinquency rate on construction equipment installment financing was 1.43% at the end of May, up 0.32 percentage points from 1.11% at the end of last year. That is more than three times the 0.43% recorded at the end of 2024. New construction equipment installment financing at the five firms runs 60 billion to 70 billion won a year, a smaller market than commercial vehicle installment financing at around 1 trillion won, yet the delinquency rate is higher.
An industry official said that "asset quality for commercial vehicle and construction equipment installment loans inevitably weakens as the construction industry deteriorates," adding that "the delinquency burden appears to be growing as the construction slump and high oil prices persist."