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Banks’ Proactive Sales Drive 10 Trillion Won More Corporate Loans in March

NSP NEWS AGENCY, By Hyun-jin Kim and Soo-in Kang, 2024-04-13 17:08 ENX7
#CorporateLoans #Householddebts #BoK #Mortgage #HousingLeaseLoans
NSP통신- (Photo = Soo-in Kang)
(Photo = Soo-in Kang)

(Seoul=NSP NEWS AGENCY) = Corporate loans expanded by 10.4 trillion won in March, the second-largest expansion in March in Korean history. The main driver was piercer competition between banks to attract more corporate lenders.

The Bank of Korea published the Financial Market Trend for March 2024 on April 11, writing that corporate loans almost doubled from 5.9 trillion won in March 2023 to 10.4 trillion a year after. The causes were analyzed: banks tried to lure more corporate lenders, and businesses needed funding.

By size, large companies borrowed 4.1 trillion won. Some companies that asked for loans for their facilities were outnumbered by companies that repaid debts for good financial ratios at the end of the quarter. Small- and medium-
sized companies took out 6.2 trillion won loans due to active sales efforts from banks and the necessity to pay corporate taxes.


Corporate bonds were issued only 50 billion won, a decrease from last month’s 3.6 trillion won due to less bond issuance and repayment for seasonal factors.

Meanwhile, a significant reduction in mortgage and other loans drove household debts to decrease by 1.6 trillion won.

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