SME loan defaults surge, yet banks forced to lend more

SME loan defaults surge, yet banks forced to lend more

Korea's small- and medium-sized enterprises (SMEs) are sinking deeper into debt as weak domestic demand prolongs the economic slowdown into its second year. Yet banks, responding to government calls for "productive finance," continue to increase corporate lending even as delinquency rates rise, industry officials said Wednesday. According to the Industrial Bank of Korea's management report, the bank's delinquency rate rose to 1 percent in the th…