Corporate loans rise slightly in Q2

SEOUL-- Loans extended to local businesses rose slightly in the April-June period from a quarter earlier on increased operating expenses and facility investments, central bank data showed Thursday.

Outstanding corporate loans came to 1,016 trillion won (US$900 billion) in the second quarter, up 1.4 percent from the preceding three months, according to data from the Bank of Korea (BOK).

Compared with a year earlier, the second quarter figure marked a 4.7 percent gain.

In terms of where the money was spent, loans extended to cover companies' operating expenses were up 0.7 percent in the second quarter to 601 trillion won from a quarter earlier, the bank said.

Loans for facility investments rose 2.5 percent in the second quarter to 415 trillion won from a quarter earlier and up 10.9 percent from a year earlier, it said.

By sector, money provided to service sector firms jumped 8.1 percent on-year to 589.3 trillion won at the end of June. Loans to manufacturers came to 331.7 trillion won, up 0.4 percent from a year earlier.

The latest findings showed borrowings by construction firms rose 2 percent on-year to 39.7 trillion won.

Source: Yonhap News Agency

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