Growth of bank lending slows in 2008

SEOUL, Feb, 16 (Yonhap) -- Growth of bank lending in South Korea edged down in
2008 from a year earlier as lenders scurried to tighten loans amid an economic
slump, the central bank said Monday.

Total loans extended by local and foreign banks last year grew by 113.39 trillion
won (US$80.53 billion), or 14.1 percent, compared with an 14.9 percent increase
the previous year, the Bank of Korea (BOK) said.
The slowdown stemmed from tightened corporate lending, which increased by 88.49
trillion won, or 20.1 percent, compared with a 24.6 percent gain a year earlier,
the BOK said.
"Lenders tightened business lending as part of heightened risk management amid
the economic slowdown," a bank official said.
Loans to households, meanwhile, grew by 24.9 trillion won, or 6.8 percent, fueled
by increased demand for home loans, it said. The growth rate for 2007 was 5
percent.
Outstanding bank loans stood at 917.11 trillion won as of the end of 2008, with
corporate loans accounting for 57.6 percent, the central bank said.
pbr@yna.co.kr
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