The Korea Times

Corporate lending grows at faster pace in Q1: BOK

Loans extended to companies in Korea grew at a faster pace in the first quarter compared with the previous three-month period, driven by strong demand from the service sector, central bank data showed Monday. Outstanding loans to local companies reached 2,061.8 trillion won ($1.33 trillion) as of end-March, up 35.6 trillion won from the fourth quarter of 2025, according to data from the Bank of Korea (BOK). The increase marked an acceleration from the previous quarter, when loans expanded by 8.5 trillion won. By sector, loans to manufacturing firms rose by 11.1 trillion won from three months earlier to 513.8 trillion won. Loans in the service sector surged by 24 trillion won to 1,317.7 trillion won on increased loans to financial and retail sectors. Regarding the purpose of the loans, operating funds increased by 26.2 trillion won in the first quarter, following a 1.9 trillion-won gain in the fourth quarter. Facility investment loans advanced by 9.4 trillion won, picking up the pace from a 6.6 trillion-won increase in the previous quarter, the BOK data showed.