Korea

Growth of South Korean banks monthly loans to small- and medium size enterprises (SME) slowed in May from April, snapping two straight months of rises, central bank data showed.

The bad loan ratio of Korean banks rose in the first quarter as local lenders were less aggressive in clearing up bad loans, the financial watchdog said.

South Korea's export growth probably accelerated this month on sales to emerging markets.

The government laid out several measures to help SMEs overcome sharp rises in the price of raw materials and reduce the service account deficit.

Despite hopes for a better economy SMEs  in South Korea are having trouble getting hold of much needed funding.

The disparity in profitability, financial stability and other key financial factors between SMEs and their larger counterparts has widened over the past ten years.

The Export-Import Bank of Korea said yesterday it has signed an agreement to provide US$500m for a petrochemical project in Saudi Arabia.

Top lender Kookmin Bank decided to suspend loans to SMEs.

Korea's household debt grew at the fastest pace in ten months in October, suggesting higher interest rates have failed to curb borrowing.

Industrial Bank of Korea said third-quarter profit dropped by 19% on higher provisions against bad loans and one-time payments to retirees.