Business · Economy · 3 hrs ago
South Korean Banks’ Business Lending Surges, but Loans to Small Business Owners Barely Rise
South Korea’s five largest banks added nearly 8.9 trillion won in business loans in October, taking the total above 900 trillion won.
The increase was the biggest in about two and a half years.
Large companies and small and medium-sized firms received most of the growth, while loans to individual business owners rose by just 421.5 billion won.
Businesses needed working cash ahead of an October value-added tax payment deadline, and some financially strong companies turned to bank loans as issuing corporate bonds became more costly.
Banks also stepped up business lending as they faced limits on expanding household loans.
More than 90% of the increase in small-business lending went to incorporated firms, not individual operators.
Banks are paying close attention to loan quality, which may help explain their reluctance to lend more to individual business owners.
The figures show how lending is shifting among businesses and households, while the next steps for bank lending are not specified.
Loans to businesses at South Korea’s five major banks rose by nearly 8.9 trillion won in October, taking the total above 900 trillion won.
Large-company and small- and medium-sized business loans drove the increase, while loans to individual business owners barely grew.
Business lending rose as companies sought working capital and some strong companies turned to bank loans instead of issuing bonds.
Banks also stepped up business lending as they faced limits on household lending and focused on managing loan quality.
- Who
- South Korea’s five major banks: KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.
- What
- Business loans rose by nearly 8.9 trillion won, while loans to individual business owners increased by only 421.5 billion won.
- When
- October 2026, compared with the end of September.
- Where
- South Korea.
- Why
- Companies needed working capital ahead of value-added tax payments, and some strong companies shifted from bond issuance to bank loans. Banks also increased business lending amid limits on household lending.
This story does not have two clearly opposing sides.
The five banks’ business-loan balance stood at the end-of-month level used for comparison.
Business loans increased by nearly 8.9 trillion won, while loans to individual business owners rose by 421.5 billion won.
Maeil Business reported the October lending figures.
- Five banks’ business loans
- 900.4025 trillion won at the end of October
- Monthly business-loan increase
- 8.8659 trillion won
- Large-company loan increase
- 3.8438 trillion won
- Small- and medium-sized business loan increase
- 5.0222 trillion won
- Individual business-owner loan increase
- 421.5 billion won