Home > Business > Finance

Corporate lending expansion slowed in last quarter of 2025, says BOK

Published: 09 Mar. 2026, 16:26 Updated: 09 Mar. 2026, 16:31

The Bank of Korea's head office in Jung District, central Seoul, is pictured on Aug. 12, 2025. [YONHAP]

Loans extended to companies in Korea grew at a slower pace in the fourth quarter compared to the previous quarter amid sluggish demand from the construction sector, central bank data showed Monday.

Outstanding loans extended to local companies reached 2.03 quadrillion won ($1.36 trillion) as of the end of December last year, up 8.6 trillion won from three months earlier, according to the data from the Bank of Korea.

The increase marks a deceleration from the previous quarter, when loans expanded by 20.2 trillion won, according to the data.

By sector, loans to manufacturing firms rose 1.2 trillion won from three months earlier, and those in the service sector expanded by 9.3 trillion won.

Loans in the construction sector, however, shrank by 2.9 trillion won in the fourth quarter, marking the sixth consecutive quarterly decline.

By purpose, operating funds increased by 2 trillion won, slowing from the 13.6 trillion-won rise seen the previous quarter. Facility investment loans advanced 6.6 trillion won, growing by the same level as three months ago, the data showed.

Yonhap