For Those Seeking a Loan, 3d Quarter May Be the Best

Many domestic lenders are likely to lend more in the third quarter, particularly to smaller companies and households, according to a recent survey by the Bank of Korea released Wednesday.

The survey, conducted among loan officers at 45 local financial institutions, found that half of the respondents said they plan to ease loan screening standards during the third quarter of this year, the central bank said. The other half said that they would maintain the current conditions.

Forty-eight percent of those polled said that they would make it easier for small and medium businesses to get loans. Sixty-six percent of the respondents suggested relaxed conditions for household loans, while 63 percent also said that they were planning to ease requirements for mortgage loans.

The responses suggest that local lenders will focus on household and small business loans, which they consider less risky than lending to large corporate borrowers.

Still, the central bank noted that there are more credit officers willing to ease conditions for loans to big businesses than those who will not do so.

By financial institution, two-thirds of local merchant banks said that they will ease loan conditions for large companies and 17 percent of foreign banks replied that they would do so.

by Chung Chul-geun