Bank loans to realtors grew at double the pace of lendings to private businesses over the past five years, according to data that a ruling party lawmaker used on Oct. 15, 2018 to argue that money was not going to industries that create jobs.
According to the Bank of Korea, 302.1 trillion won (US$266.63 billion) was lent to private businesses as of the second quarter this year, up 70.6 percent from the 177.1 trillion won in the first quarter of 2013.
Loans to real estate businesses during the measured period grew from 50.2 trillion won to 120.5 trillion won, up 140 percent, the data showed.
The proportion of borrowings by realtors to the total amount of loans by private businesses consequently rose from 28 percent in the first quarter of 2013 to 40 percent in the second quarter this year.
Comparatively, loans by manufacturing businesses increased 37 percent during the period. They went up 36 percent for wholesale and retail businesses and 48 percent for accommodations and restaurants.
"Loans are not going to manufacturing, wholesale and retail, accommodations and restaurants that are highly effective in creating jobs," said Rep. Kim Doo-gwan of the ruling Democratic Party, who had obtained the data for the parliamentary audit.
"(The money) is flowing to real estate businesses like rentals that bring easy money, sending up housing prices." (Yonhap)