Domestic NPL sales to increase in the second half of the year, Samjong KPMG report
Samjong KPMG said in a report that, as an economic slowdown coincides with the possibility of a policy rate hike, 8NPL sales in the domestic market are expected to expand in the second half of the year. The report points out that rising financing costs and a slowdown in the real estate market will make selective strategies important for investors.2026The report points out that rising financing costs and a slowdown in the real estate market will make selective strategies important for investors.
Samjong KPMG said in its 8report titled “Non-Performing Loan (NPL) Market Trends and 2026Second-Half Outlook” that domestic NPL sales are expected to increase in the second half of the year as an economic slowdown coincides with the possibility of a policy rate hike. It pointed out that this is important from an investor’s perspective.
According to the Financial Supervisory Service, the domestic banking sector’s fixed bad-loan ratio for this year’s 1quarter was 0.60%, continuing its upward trend since the 3quarter of last year. The volume of NPLs is also trending upward, reaching 17trillion 7,000hundred million won.
The report analyzed that banks and other financial companies are increasingly moving to sell NPLs due to stronger efforts by financial institutions to manage soundness. The time and costs required for collateral disposal and corporate normalization, as well as the burden of loan-loss provisions, were cited as the background.
The report said that, from an investment-market perspective, selective investment strategies are expected to be further strengthened in light of rising financing costs and a slowdown in the real estate market. It emphasized that while investment opportunities are expanding, financing conditions and exit strategies are key.
The report added that the specific timing and volume of asset sales vary by financial institution. The report’s publication date is 7 month 8day.