South Korean banks’ lending to companies up in January

This was due to season factors.

South Korean banks’ lending to large corporates and small and medium enterprises (SMEs) rose in January, according to data from the Bank of Korea.

Overall loans disbursed rose by $5.01b (KRW6.7t) in January, reversing the $4.41b (KRW5.9t) contraction reported in December. 

BOK attributed the rises to seasonal factors, notably the re-lending of loans temporarily redeemed at the previous year-end, and demand for funds for value-added tax payments.

Bank lending to large corporates grew by KRW5.2t during the period, compared to a KRW2t contraction in December. 

Lending to SMEs rose KRW1.5t, reversing the KRW3.9t contraction for December 2023.