South Korea’s debt issue began less than a year ago, and credit union lending is raising concerns that it could cause more trouble.

MG Community Credit Cooperatives, one of Korea’s largest lenders, closed a branch last month after reporting a 60 billion won ($45 million) real estate loan loss.

This led to deposit outflows at the lenders due to increased default rates. The default rates rose to 6.18% in late June from 3.59% at the end of last year, indicating that higher interest rates are making debt repayment difficult for debtors.

A class of lenders’ three-year won debt spreads have widened near a four-month high touched in July.

South Korea’s credit problems reflect US, European, and Southeast Asian problems as central banks raised interest rates to curb inflation.

In China, a property debt crisis is intensifying into its fourth year after officials cut borrowing.