The Bank of Korea published its preliminary Flow of Funds data for the first quarter of 2026, showing that net lending by the total economy, defined as the combined domestic sectors, rose to KRW 84.3 trillion from KRW 51.9 trillion in the previous quarter. The increase was driven by larger net lending from households and non-profit institutions serving households, which rose to KRW 79.2 trillion from KRW 67.0 trillion, and a sharp improvement in non-financial corporations, which moved to KRW 20.8 trillion from KRW 0.1 trillion. General government recorded deeper net borrowing of KRW 23.3 trillion, compared with KRW 19.0 trillion in the prior quarter. On the balance sheet side, total financial assets of the domestic non-financial sector reached KRW 14,770.0 trillion at the end of the first quarter, up KRW 768.8 trillion from the previous quarter-end, while total financial liabilities, excluding equity and foreign direct investment, rose by KRW 182.7 trillion to KRW 8,335.4 trillion. As a result, the sector's financial assets-to-liabilities ratio increased to 1.77 from 1.72. The household and NPISH ratio rose to 2.60 from 2.54, while the ratios for non-financial corporations and general government increased to 1.23 and 1.95, respectively.
Bank of Korea2026-07-07
Bank of Korea reports Q1 2026 net lending rose to KRW 84.3 trillion as household and corporate surpluses widened
The Bank of Korea's preliminary Q1 2026 Flow of Funds data showed total economy net lending increased to KRW 84.3 trillion from KRW 51.9 trillion in the previous quarter. Household and NPISH net lending rose to KRW 79.2 trillion and non-financial corporations to KRW 20.8 trillion, while general government net borrowing deepened to KRW 23.3 trillion. The domestic non-financial sector's assets-to-liabilities ratio increased to 1.77 from 1.72.