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Jan. 4 (Asia Today) — Corporate lending at South Korea’s five largest commercial banks grew at about half the pace of the previous year, despite government calls for “productive finance” aimed at steering money toward businesses, industry data showed.

Outstanding corporate loans at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank totaled 844.7 trillion won (about $650 billion) at the end of December, up 2.94% from a year earlier, the data showed. The increase of 24.1 trillion won (about $18.5 billion) compared with 2024’s 6.95% rise, when balances increased 53.3 trillion won (about $41.0 billion).

The lending trend diverged between the first and second halves of the year. Corporate loan balances rose 9.1 trillion won (about $7.0 billion) in the first half as banks prioritized asset quality amid higher rates and more financially strained firms. Growth accelerated in the second half, rising 15.0 trillion won (about $11.5 billion), as the government that took office in June pushed banks to expand credit to companies and advanced industries while tightening household lending.

Even so, growth in loans to small and medium-sized firms slowed sharply. SME lending at the five banks increased 12.2 trillion won (about $9.4 billion) last year, down from 31.3 trillion won (about $24.1 billion) in 2024, the data showed. Loans to large companies rose 11.9 trillion won (about $9.2 billion), down from 22.0 trillion won (about $16.9 billion) the prior year, but large-company loan growth still outpaced SME growth, with rates of 7.52% and 1.84%, respectively.

Loans to the self-employed declined. Balances fell 1.2 trillion won (about $915 million) to 324.4 trillion won (about $249.6 billion) from 325.6 trillion won (about $250.5 billion) a year earlier, according to the data.

Bankers cited higher delinquency risks among SMEs and the self-employed and said lenders have leaned toward higher-quality corporate borrowers to protect capital, including common equity tier 1, or CET1, ratios.

Authorities are expected to intensify pressure this year to expand corporate credit. Banks have said they broadly agree with the policy direction but want regulatory relief, including lower risk weights on corporate loans, to increase supply while meeting capital rules.

In September, financial authorities said they would adjust capital regulations, including raising the minimum risk weight on mortgage loans and lowering risk weights on banks’ stock holdings. The move could expand corporate lending capacity by up to 73.5 trillion won (about $56.5 billion), the report said.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Borrowers to receive wage garnishment notices starting January 7, Department of Education confirms.

The administration of United States President Donald Trump says it will begin garnishing wages from some borrowers who have defaulted on their student loans, marking the first time the federal government has taken such action since the onset of the COVID-19 pandemic.

Affected borrowers will begin receiving notices on January 7, a Department of Education spokesperson told Al Jazeera on Tuesday.

The policy is expected to initially impact about 1,000 borrowers, and the number is to grow over time.

“The notices will increase in scale on a month-to-month basis,” the spokesperson said.

Al Jazeera asked the department for clarification on how borrowers were selected for the first round of garnishments, how many additional people may be affected and the rationale behind those decisions.

The agency did not clarify but said collections are “conducted only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans”.

Under federal law, the government may garnish up to 15 percent of a borrower’s take-home pay as long as the individual is left with at least 30 times the federal minimum wage per week. The federal minimum wage is currently $7.25 an hour, a rate that has remained unchanged since July 2009.

About one in six American adults holds student loan debt, which totals about $1.6 trillion. As of April, more than 5 million borrowers had not made a payment in at least a year, according to the Education Department.

The garnishments are planned as economic pressure mounts for many Americans amid rising prices and a cooling labour market. According to consulting firm Challenger, Gray & Christmas, more than 1.1 million people lost their jobs in 2025 as job growth slowed. Federal data also showed mixed employment trends in recent months with job losses reported in October followed by modest gains in November.

In the months of October and November, the unemployment rate increased to 4.6 percent, the highest since 2021, according to the US Department of Labor’s Bureau of Labor Statistics.

“Families are being forced to choose between paying their bills and putting food on the table. The Trump administration’s decision to begin garnishing wages takes even that meagre choice away from student loan borrowers who are living on the brink,” Julie Margetta Morgan, former deputy undersecretary at the Education Department under former President Joe Biden, told Al Jazeera.

“Instead of solving the affordability crisis that’s leaving Americans unable to pay their student loans, the president is further punishing families and forcing them to forgo the very basics.”

In addition to wages, the federal government has the authority to garnish income from tax refunds, Social Security benefits and certain disability payments.

Real Madrid and Brazil forward Endrick has agreed to join French side Lyon on loan until the end of the season.

The highly-rated 19-year-old signed for the Spanish giants in the summer of 2024 from Palmeiras after winning back-to-back Brazilian league titles.

However, after making 37 appearances in the 2024-25 campaign he has seen his opportunities limited at the Bernabeu this term under Xabi Alonso, featuring on just three occasions.

The teenager has scored three goals in 14 matches for Brazil but his last international cap came in March during a 4-1 World Cup qualifying defeat against Argentina in Buenos Aires.

Endrick will be hoping that his switch to Ligue 1 allows him to impress and force his way back into the Brazil squad in time for next summer’s World Cup in the United States, Canada and Mexico.

Dec. 20 (UPI) — Officials for the European Union have agreed to loan $105 billon to Ukraine to help it stay financially solvent over the next two years amid Russian attacks in the Odesa region.

The money is in lieu of an allocation to Ukraine from frozen Russian assets equal to nearly $246 billion and being held in Belgium, the BBC reported.

The funds are equal to about two-thirds of the amount that Ukraine will need to pay its bills and give it a stronger bargaining position as peace talks continue with the aim of ending the Ukraine War that started when Russia invaded its neighbor on Feb. 24, 2022, according to The New York Times.

Ukrainian President Volodymyr Zelensky said the loan is interest-free and only would be repaid if Russia were required to pay reparations to Ukraine.

News of the E.U. allocation comes after a Russian missile strike near Odesa that killed eight and injured 27 others on Friday night, CNN reported.

Russian missiles struck a port facility in Pivdenne, and some of those killed and wounded were on a bus that was struck during the attack.

The missile strikes were part of an ongoing aerial campaign against the Odesa region over the past nine days and caused a power outage in Odesa, which is located on the Black Sea and about 300 miles south of Kyiv.

Two bridges in southern and northern Odesa were knocked out in recent strikes and are being repaired.

Russian forces also are targeting the energy infrastructure in Ukraine and have used drones and missiles to damage or destroy many targets in recent months.