Corporate loans rise 9.7 trillion won as household credit slows

Bank lending to the corporate sector accelerated in August 2026, rising by 9.7 trillion won compared to 7.7 trillion won in July, bringing the outstanding total to 1,430.8 trillion won.

Loans to large enterprises rose by 4.9 trillion won as companies refinanced maturing debt, while lending to small and medium-sized enterprises increased by 4.8 trillion won.

In contrast, bank household loan growth moderated to 3.4 trillion won from 5.5 trillion won in July, bringing outstanding household debt to 1,198.3 trillion won.

While home mortgage loans expanded by 4.0 trillion won amid higher transactions in the Seoul metropolitan area, unsecured and other consumer loans declined by 0.6 trillion won.

Three-year Treasury bond yields reached 3.84 percent in August and rose further to 3.90 percent in early September, reflecting higher oil prices and overseas yield pressures.

Corporate bonds recorded net redemptions of 0.9 trillion won as elevated financing costs deterred issuance, shifting corporate funding to short-term paper and commercial paper, which saw 4.1 trillion won in net issuance.

Bank deposits stabilized with a 0.1 trillion won increase following a 30.0 trillion won drop in July, while asset management company inflows rose by 23.5 trillion won.