A recent survey by the Bank of Korea (BOK) indicates that domestic banks in South Korea will continue to exhibit a lenient approach toward extending loans to small and medium-sized enterprises (SMEs) and households in the third quarter of the year due to relaxed lending restrictions. However, banks are projected to adopt a more stringent stance when dealing with large corporations. On the other hand, non-banking financial institutions are expected to demonstrate a hardened attitude toward most business sectors, with credit card companies being the notable exception.

However, the survey highlights a potential increase in credit risks for SMEs in