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Korea Intelligence | Economics
Corporate Loan Market Trends in 2016 On February 20, the Korea Development Bank (KDB) published a report regarding the corporate loan market in 2016. According to the report, total corporate loan burden increased by 20.8 trillion KRW, 56% less of an increase than 2015. Lower interest rates in recent years have led to decreased bank borrowing costs, but, beginning in 2H 2016, the gap between large business group and SME lending increased.
In 2016, SMEs corporate loan burden increased by 4.5 trillion KRW less than in 2015. SME access to financing deteriorated due to increased borrowing cost.
Data KDB, Chart and Translation KBLA
From 2015 to June 2016, roughly one-third of SMEs which took a loan had a good credit score (credit rating levels 1-3), up ten percentage points from 2010, while roughly 62% of large business groups which took a loan had a good credit score.
Data KDB, Chart and Translation KBLA