Lending to the services sector grew at record pace for the third quarter in South Korea as companies as well as self-employed sustained on loans to survive the Covid-19 storm.
According to data released by the Bank of Korea on Wednesday, the outstanding balance of loans extended to the service sector by registered depository corporations reached 852.1 trillion won ($774.2 billion) as of end of September, up 28.9 trillion won from the end of June. The balance was up 18.5 percent from the same period a year ago and the sharpest growth for the third quarter. The gain, however, was smaller than 47.2 trillion won in the previous quarter.
The BOK said that the growth accelerated in the third quarter on year while slowing on quarter.
The outstanding loans for the wholesale and retail sector reached 192.6 trillion won at the end of September, up 6.1 trillion won from the end of June. The balance in accommodation and food service sector also increased 1.4 trillion won to 72.6 trillion won during the same period while that in real estate activities sector 8.6 trillion won to 281.2 trillion won. The growth slowed from 12.4 trillion won gain in the wholesale and retail trade sector in the second quarter, 6.4 trillion won in accommodation and food service sector, and 10.6 trillion won in the real estate services sector.
Overall industrial loans, meanwhile, also showed the sharpest growth for the third quarter as corporations’ demand for operation funds increased to maintain businesses.
Industrial loans stood at 1,366 trillion won as of end of September, up 37.8 trillion won from the end of June. The 15.4 percent on-year growth is the sharpest for the third quarter.
Working capital loans that account for the biggest in industrial loans gained 24.6 trillion won from the previous quarter to 813 trillion won. The 18.6 percent on-year growth is the sharpest for the third quarter, data showed. Loans for facilities investment expanded by 13.4 trillion won.
Loans extended by banks grew by 20.4 trillion won to reach 1,031.2 trillion won at the end of September while those by non-bank depository institutions by 17.3 trillion won to 334.8 trillion won, data showed.
By Lee Eun-joo
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