Loans to small- and medium-sized companies (SMEs) posted a record decline last month, as lenders were reluctant to extend loans amid the protracted economic slump, the central bank said. The overdue rate of SME loans was 2.2 per cent in December 2004, up 0.1 per cent year-on-year.
According to the Bank of Korea (BOK), the outstanding balance of loans to SMEs came to 235.6 trillion won (US$225.7bn) at the end of December, down 6.2 trillion won from a month earlier. The fall represented the broadest margin since the BOK began compiling data in January 1999.
Source: Asia Pulse and The Korea Times
