Aftermath such as temporary loan repayment for year-end financial ratio management
At the end of the fourth quarter of last year, loans by industry increased by KRW 27 trillion from the previous quarter, and the increase decreased for the second quarter. With the recovery of the industry continuing, the balance of loans from manufacturing and others was reduced due to temporary repayment of loans to manage the financial ratio at the end of the year.
According to the Bank of Korea’s’Loans by Industry for Deposit Handling Organizations in the 4th Quarter of 2020′ released on the 3rd, the balance of loans by industry in the fourth quarter was 1393 trillion won, an increase of 27 trillion won compared to the end of the previous quarter.
The balance of loans increased by 6,910 trillion won in the second quarter of last year, the largest increase in history, and the increase in the second quarter decreased. However, compared to the same period of the previous year, it increased by 15.4%, and the increase was wider than in the fourth quarter of 2019 (7.7%).
By industry, the balance of loans in the manufacturing industry has changed from an increase of 5.8 trillion won to a decrease of 2.2 trillion won compared to the previous quarter, and the construction industry has also changed from an increase of 1.4 trillion won to a decrease of 700 billion won. The service industry alone continued to increase at the same level as the previous quarter, from an increase of 28.900 trillion won to an increase of 28.700 trillion won.
A BOK official said, “In the case of the manufacturing industry, the balance of loans decreased due to temporary repayment for the financial ratio management at the end of the year, while the industry continued to recover, while the service industry continued to improve sales performance. The loan amount increased to a similar level as in the previous quarter,” he explained.
By use, the increase in working capital has shrunk from 2.4 trillion won to 1.07 trillion won, while the increase in facility funding has expanded from 1.3 trillion won to 17 trillion won.
By business sector, deposit bank loans increased from 20.4 trillion won to 12.6 trillion won, and non-bank deposit handling institutions decreased from 17.3 trillion won to 15 trillion won, respectively.
By type of company, the increase in corporate companies among deposit bank loans decreased from 11.30 trillion won to 2.2 trillion won, while non-incorporated companies expanded from 9.100 trillion won to 1,0400 billion won.
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