It seems we cannot break free from the culture of default loans. Default loans are increasing, or even if reduced temporarily by some means (rescheduling or restructuring), they rise again under the pretext of some crisis or another.

We've repeatedly heard that this excessive amount of defaulted loans has created multidimensional risks in the banking sector. Defaulted loans are consuming good assets, increasing bad assets, and overall, raising the level of loan risk for banks. High default loans signify weaknesses in loan management and reveal a lack of capability on the part of borrowers to repay their debts.

Through the deterioration of these indicators, the overall weakness of the economic condition is starkly highlighted. A recent report by the central bank also made comments on the upward trend of defaulted loans concerning the banking sector and the overall economic situation.

The report states that to maintain financial sector stability and the well-being of the banking sector, the upward trend of defaulted loans must be effectively controlled. At the same time, it's necessary to recover from the status of accumulated defaulted loans to reduce the excessively increased defaulted loans. The current rate of defaulted loans in the banking sector is identified as concerning.