South Korea's corporate loans jump to $1.12t in Q2

This is the largest amount on record for a second quarter period.

Loans extended to companies in South Korea jumped by the largest amount on record in Q2 as financial firms sharply increased lending to the service sector amidst a new wave of COVID-19 outbreaks, reports Yonhap News Agency, based on central bank data.

The outstanding amount of corporate loans came to $1.12t (KRW1,328.2t) at the end of June, up $1.42b (KRW69.1t) from three months earlier, data from the Bank of Korea (BOK) showed.

It compared with a $1.06b (KRW51.4t) rise in Q1.

The reading marks the largest on-quarter increase since the first quarter of 2008, when the BOK began to compile related data.

"Financial institutions increased financial support for the service sector amid the COVID-19 pandemic, and companies in the segment also ramped up efforts to secure funds due to the business slump," the BOK said.

In the April-June period, loans extended to the service industry jumped $39.74b (KRW47.2t), accelerating from the $28.63b (KRW34t) increase in Q2.

Lending to the service sector grew by the largest quarterly amount on record in the second quarter, the BOK added.