Corporate loans rise by record amount in Q2 amid pandemic
SEOUL, Sept. 2 (Yonhap) -- Loans extended to companies in South Korea jumped by the largest amount on record in the second quarter, as financial firms sharply increased lending to the service sector hit hard by the new coronavirus outbreak, central bank data showed Wednesday.
The outstanding amount of corporate loans came to 1,328.2 trillion won (US$1.12 trillion) at the end of June, up 69.1 trillion won from three months earlier, according to the data from the Bank of Korea (BOK).
It compared with a 51.4 trillion won rise tallied in the first quarter.
The second-quarter reading marks the largest on-quarter increase since the first quarter of 2008, when the BOK began to compile related data.
"Financial institutions increased financial support for the service sector amid the COVID-19 pandemic, and companies in the segment also ramped up efforts to secure funds due to the business slump," the BOK said.
In the April-June period, loans extended to the service industry jumped 47.2 trillion won, accelerating from a 34 trillion won increase in the previous quarter.
Lending to the service sector grew by the largest quarterly amount on record in the second quarter, the BOK added.
Loans to manufacturing firms added 17.2 trillion won in the cited period, up from a 14.8 trillion won gain in the preceding quarter as loan demand increased amid the virus outbreak.
In March, banks reached an agreement with the government to extend loan maturity for cash-strapped small merchants and small and medium-sized enterprises (SMEs) by six months until the end of September.
The government announced last week that the loan maturity will be extended by another six months.

In this photo, taken April 6, 2020, a local customer (L) is seen having an interview with a bank official in Seoul for a special, low-interest loan for businesses hit by the COVID-19 pandemic. (Yonhap)
sooyeon@yna.co.kr
(END)
-
Nuclear envoys of S. Korea, U.S., Japan condemn N. Korea's stipulation of nuclear policy
-
BTS' Jungkook to drop 2nd solo single
-
Opposition leader Lee again proposes talks with President Yoon
-
BTS' Jungkook to release first solo album 'Golden'
-
Unification ministry uses metaverse to recreate hometowns of elderly S. Koreans hailing from North
-
Unification ministry uses metaverse to recreate hometowns of elderly S. Koreans hailing from North
-
Police launch belated probe into another teacher's suicide after parental harassment
-
(LEAD) S. Korea's Coast Guard apprehends 22 Chinese after illegal entry attempt
-
79 pct of young S. Koreans agree on need to improve ties with Japan: poll
-
Memorials commemorating Itaewon crowd crush to be erected at accident site
-
Defense ministry warns N. Korea will face end of regime in event of nuclear use attempt
-
N. Korea slams U.S. over Pentagon document calling regime 'persistent' threat
-
(Asiad) S. Korea beat 10-man Uzbekistan in men's football semis, reach brink of 3rd straight gold
-
N. Korea intensifying cyber attacks against S. Korean shipbuilders: spy agency
-
(LEAD) S. Korea, Japan to hold 'strategic dialogue' for 1st time in nine years