SEOUL - Corporate loan growth in South Korea has accelerated for the second consecutive quarter in Q3, as businesses increasingly favor loans over debt sales due to high market rates. This trend was revealed in recent data published by the Bank of Korea (BOK).
According to Yonhap News Agency, the outstanding loans extended to local companies totaled 1,875.7 trillion won (US$1.4 trillion) at the end of September, marking an increase of 32.2 trillion won from three months earlier. This follows a 24.3 trillion-won advance in the previous quarter. By sector, loans to manufacturing firms rose by 10.3 trillion won in the third quarter to 457.7 trillion won, accelerating from the previous quarter's 5.6 trillion-won gain. In the service sector, total loans expanded by 16.9 trillion won to 1,205.9 trillion won, compared to a growth of 14 trillion won in the second quarter.
This uptick in corporate loan growth reflects how companies in South Korea are adjusting their financial strategies amid fluctuating market conditions.