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Corporate loan growth accelerates in Q4

All News 12:00 March 04, 2020

SEOUL, March 4 (Yonhap) -- The rise in debt extended to companies in South Korea accelerated from three months earlier in the fourth quarter on a sharp increase in fresh loans to those in the service sector, central bank data showed Wednesday.

The outstanding loans extended to local companies came to 1,207.8 trillion won (US$1.02 trillion) as of end-December, according to preliminary data from the Bank of Korea (BOK).

The reading marks a 24.1 trillion-won increase from three months earlier, which marks an acceleration from a 20.5 trillion-won rise in the previous quarter.

From a year earlier, overall corporate loans jumped 86.4 trillion won or 7.7 percent.

The sharp increase was largely attributed to a rise in debts extended to companies in the service sector.

In the fourth quarter, fresh debt extended to firms in the service industry increased by 22.7 trillion won to 741.9 trillion won while debt to manufacturing firms added only 100 billion won to 357.1 trillion won.

The overall debt owed by construction companies dipped 100 billion won from three months earlier to 42.7 trillion as of end-December, according to the BOK.

bdk@yna.co.kr
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