The value of loans taken out by self-employed business owners has surpassed the quadrillion mark.

According to a report on financial stability released by the Bank of Korea on Thursday, the cumulative value of such loans stood at one quadrillion-14-point-two trillion won, or over 795 billion U.S. dollars, as of the end of the third quarter.

The bank also forecast the size of non-performing loans to expand to 40 trillion won by the end of next year if the effect of financial support policies is compromised by rising interest rates and a slowdown in recovery.

The delinquency rate on such loans, however, remained low at zero-point-19 percent even though the income of self-employed businesses has still not recovered to pre-pandemic levels.

The report emphasized the need to promote debt restructuring for vulnerable borrowers and phase out financial support measures for borrowers who are not at risk.