South Korea’s corporate loan growth quickened in Q3: report

This was thanks to a rise in loans made to the service sector during the period.

South Korea’s corporate loan growth rose faster in the third quarter (Q3) compared to the previous quarter, driven by a rise in loans to the service sector, reports Yonhap, based on central bank data.

The outstanding loans extended to local companies came to $1.29t (KRW1,530.7t) as of end-September, up KRW52.2t from three months earlier, data from the Bank of Korea (BOK) showed.

Loans made to the service sector grew by KRW41.2t on-quarter to KRW986.8t over the same period.

Compared to Q3 2020, the total corporate loan amount is 12.1% rise.

By industry, loans for real estate businesses expanded KRW13.8t in Q3 compared to the second quarter.

Loans to wholesale and retail companies expanded KRW10.6t over the same period.

Credit extended to the manufacturing sector also grew KRW7.7t won on-quarter to KRW412.5t, BOK data showed.