Over 50% of corporate loans hold real estate on collateral

More than half of 586.3 trillion won (US$513.39 billion) in corporate loans by local commercial banks is collateralized by real estate, regulator's data showed Friday.

Records provided by the Financial Supervisory Service for a parliamentary audit said that, of the total corporate lending as of the end of June, 51.6 percent, or 302.4 trillion won, holds properties as collateral.

The latest figure is a jump from 33.7 percent in 2010.

Corporate loans based on credit, on the contrary, shrank. In 2010, credit loans to corporations stood at 209 trillion won out of the total 404 trillion won, accounting for 51.7 percent. At end of June this year, the comparative numbers stood at 198 trillion won out of 586 trillion won, or 33.8 percent.(Yonhap)