Loans to the electronics components sector continue to rise amid the semiconductor super cycle, while construction lending remains frozen, deepening polarization across industries.
According to the Bank of Korea's "Q4 2025 Loans by Industry at Depository Institutions" report released on the 9th, total industrial loans outstanding reached 2,026.1 trillion won at the end of last year, up 8.6 trillion won from the previous quarter. However, the annual growth rate compared to the end of 2024 was 3.1% (60.7 trillion won), the lowest in 13 years since 2012 (2.6%).
The polarization in industrial lending is particularly stark. Construction loans fell to 99.9 trillion won, down 4.4 trillion won from the previous year. In the fourth quarter alone, 2.9 trillion won flowed out. The decline has continued for six consecutive quarters, marking the longest contraction on record. The results directly reflect the industry downturn, including declining construction work completed.
In contrast, as semiconductor sales and exports surged due to the U.S.-led artificial intelligence boom, loans to the electronics components and computer industry grew by 3.7 trillion won for the full year and 300 billion won in Q4 alone. "Loans to semiconductor companies increased, centered on facility investment funds," said Lee Hye-young, head of the Bank of Korea's Financial Statistics Team.
Overall manufacturing loans grew 4.0% year-over-year, but this was lower than the 2024 growth rate of 5.7%. Service sector loans increased by 9.3 trillion won in Q4, though the pace of growth slowed from the previous quarter. Financial and insurance sector loans rose by 6.9 trillion won, but the growth rate narrowed as banks reduced lending to holding companies and special purpose companies, along with decreased funding for non-performing real estate loan acquisitions.