Industrial loans grow 30.6 trillion won in second quarter
Industrial lending by South Korean depository corporations expanded by 30.6 trillion won in the second quarter of 2026, bringing total outstanding credit to 2,065.3 trillion won. Growth was driven primarily by corporate demand for working capital and services sector borrowing.
Working capital leads corporate borrowing
Total outstanding industrial loans reached 2,065.3 trillion won at the end of June 2026, up 4.7 percent year-on-year.
Corporate demand for working capital drove the expansion, rising by 23.8 trillion won to reach 1,086.9 trillion won.
In contrast, borrowing for facilities investment grew at a more moderate pace, adding 6.9 trillion won to reach 978.4 trillion won.
Depository banks supplied 29.3 trillion won of the quarterly increase, while non-bank depository institutions contributed 1.3 trillion won.
Within bank lending, large corporations accelerated their borrowing, increasing loans by 16.5 trillion won or 11.9 percent year-on-year.
Small and medium-sized enterprises added 11.4 trillion won.
Services and real estate drive sectoral gains
By sector, services accounted for the largest share of credit expansion, rising by 19.9 trillion won to 1,313.1 trillion won.
Real estate activities and the finance and insurance sector each added 6.2 trillion won during the quarter.
Manufacturing loans grew by 8.4 trillion won to an outstanding 521.5 trillion won, driven by chemical and fabricated metal producers.
In contrast, construction lending remained stagnant, contracting by 3.4 percent year-on-year to 100.4 trillion won.
Liquidity cushions override capital spending
Heavy reliance on working capital reveals that firms are securing operating liquidity rather than funding growth.
Muted facility borrowing and stagnant construction credit confirm lingering corporate hesitation.
Moreover, accelerating real estate debt shifts risk back onto bank balance sheets.