[THE INVESTOR] Loans extended to local businesses rose slightly in the first quarter on increased operating expenses and facility investments, central bank data showed on May 29.

Outstanding corporate loans came to 1,001.7 trillion won (US$894 billion) in the January-March period, up 1.6 percent from a quarter earlier, according to data from the Bank of Korea.

Compared to a year earlier, the first quarter figure marked a 4.4 percent gain.

In terms of where the money was spent, loans extended to cover companies‘ operating expenses were up 1.2 percent in the first quarter to 596.8 trillion won from a quarter earlier, the bank said.

Loans for facility investments rose 2.3 percent in the first quarter to 404.9 trillion won from a quarter earlier, and up 11.7 percent from a year earlier, it said.

By sector, loans to service sector firms jumped 8 percent year-over-year to 577.4 trillion won at the end of March. Loans to manufacturers came to 330.5 trillion won at the end-March, up 0.4 percent from a year earlier.

By Alex Lee and newswires (alexlee@heraldcorp.com)