New data finds that the default rate of household loans by South Korean banks posted growth for two consecutive months amid a sharp surge in such transactions.

According to data released by the Financial Supervisory Service on Wednesday, the delinquency rate on household loans stood at zero-point-38 percent as of the end of August, up zero-point-02 percentage points from a month ago and up zero-point-17 percentage points on-year.

This comes after the rate posted growth in July and August after slipping zero-point-04 percentage points at the end of June.

The delinquency rate on mortgages climbed zero-point-01 percentage point to zero-point-24 percent at the end of August compared to the previous month, while jumping zero-point-12 percentage points on-year.

The default rate on credit loans stood at zero-point-76 percent, up zero-point-05 percentage points from the end of July while the delinquency rate on corporate loans grew zero-point-06 percentage points to zero-point-47 percent during the same period.