Bank corporate loans rose by 9.7 trillion Korean won in August to 1,430.8 trillion won as the government promoted productive finance and companies sought funding for investment and bond repayments. Large-company loans increased by 4.9 trillion won, slightly exceeding the 4.8 trillion won rise in SME lending. From January through August, large-company loans grew by 34.2 trillion won, ahead of the 32.7 trillion won increase for SMEs, reversing last year’s pattern. Semiconductor capacity expansion and AI infrastructure helped lift the Korea Development Institute’s facility-investment forecast to 7.9% from 3.3%, but investment and profitability remain concentrated in the semiconductor sector. Of the 30.6 trillion won increase in industrial loans in the second quarter, 23.8 trillion won, or 78%, went to operating funds rather than facilities. SME credit quality also remained weaker: SMEs accounted for 7.8 trillion won, or 79.6%, of 9.8 trillion won in new corporate non-performing loans during the first half, compared with 2 trillion won for large companies. Critics say productive finance must be judged by whether it reaches growth-oriented SMEs and generates broader industrial investment.