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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.

On June 12, Peggy Orenstein’s inbox flooded with booking requests for her Inglewood Airbnb.

The date seemed random, but after a quick search, the influx of interest became clear. It was exactly a year before one of the biggest events in American soccer history, when the U.S. will kick off its World Cup in a match against Paraguay at SoFi Stadium, and Orenstein had set up the system to only accept booking requests up to a year in advance.

Orenstein’s rental sits just across the street from the venue. Suddenly, her Airbnb became one of the hottest homes in the Southland.

She hadn’t adjusted the prices yet to reflect the rabid demand, so she declined the requests and tweaked the rates. Typically, a two-night stay at the house would cost around $1,000. For a two-night stay during the Americans’ opening match June 12, it’ll now cost more than $10,000.

Roughly 6.5 million people are expected to travel to North America during the 2026 World Cup, and many of them will be heading to L.A., where SoFi Stadium is hosting eight games, including two U.S. matches during the group stage. Airbnb hosts are viewing the games as a gold mine, hoping soccer fans will shell out thousands to stay near the stadium.

The World Cup rental market will serve as a test case for the 2028 Olympics, when an estimated 15 million people are expected to visit Southern California.

For the night of the opening match June 12, more than 70% of short-term rentals in Inglewood have already been booked, according to data site Inside Airbnb. That’s a 58% increase compared to typical reservation rates on normal days.

Rates are rising as well. On June 1, the average booked rate for an Airbnb in L.A. is $245, according to data platform AirDNA. On June 12, when the U.S. plays Paraguay, it’s $382 — a 56% jump.

In Inglewood, prices are even wilder. Homes that normally rent for hundreds are listed for thousands. The nightly price for a one-bedroom apartment a block from SoFi is typically around $400. On June 11, the day before the game, it’s $713. On June 12, the day of the game, it’s $1,714.

“It’ll be interesting to see how much people will pay,” Orenstein said.

Some hosts use an algorithm to determine their nightly rates, but Orenstein sets the prices herself. She arrived at the $10,000 number by looking at nearby hotels, which are mostly sold out for the nights of the eight World Cup matches.

“The Lum Hotel had a suite available during the World Cup for $1,943. Meanwhile, our house can accommodate eight guests with four bedrooms, plus a kitchen and yard,” she said.

There are classic amenities such as a grill and hot tub, but the biggest amenity is proximity. Orenstein is banking on visitors ponying up for the convenience of parking at the property and walking to the stadium while everyone else navigates traffic jams and long rideshare waits.

“It gets crazy out there,” she said. “I’ve had people offer to pay me $40 to use the bathroom while walking by during a Taylor Swift concert. Our neighbor sold parking spots for $1,000 during the Super Bowl.”

David (pictured) and Peggy Orenstein, run an Airbnb across the street from SoFi Stadium.

(Robert Gauthier/Los Angeles Times)

Colin Johnson has been renting out his home near SoFi Stadium for two years. It’s his actual residence, meaning when someone stays there, he has to book a hotel or crash on a friend’s couch. But he said the payouts are worth it.

“There are so many events and venues around us, why wouldn’t we take advantage?” he said.

A typical two-night stay in the three-story townhouse runs about $600. For the U.S. opening match, it costs more than $3,000.

Johnson said demand is roughly 60% Americans and 40% foreigners, but he expects foreign interest to pick up as the games get closer.

Demand isn’t limited to Inglewood. Luxury rentals across Los Angeles are being booked for eye-popping numbers, according to Mokhtar Jabli, founder of luxury rental platform Nightfall Group.

He’s booked two so far. The first was rented by a Florida client coming to Los Angeles to see Iran play two matches at SoFi Stadium against New Zealand and Belgium. The modern home in Hollywood Hills, complete with an infinity pool overlooking the city, rented for $33,000 for seven nights from June 15 to 22.

The second was booked by a New York client coming to see the U.S. play Paraguay. The 7,000-square-foot mansion in Malibu comes with a movie theater, butler, security and full-time staff. For 10 days, it rented for $100,000.

Jamie Lane, chief economist for AirDNA, expects a surge across L.A. County — not just in demand, but in supply.

“There’s a lot of interest right now in what you can make as a host,” Lane said. “In most cities, there won’t be enough lodging, so that pushes rates higher.”

He added that since Airbnb is the official “Alternative Accommodations and Bookings Platform” of the World Cup, the company is urging people to host. AirDNA has hosted multiple bootcamps around the country for people interested in renting out their homes during the World Cup, teaching them how to furnish homes, how to set prices during the games and more.

Lane expects a boost in listings early next year, which would mirror Paris in the months leading up to the 2024 Olympics, when active listings soared by 40%.

It’s unclear how proactive Southern California cities will be in cracking down on illegal listings as homeowners look to make a quick buck by renting out their rooms. Many cities have strict short-term rental regulations, but haven’t taken the steps necessary to enforce them.

Last year, the L.A. Housing Department estimated that 7,500 short-term rentals were violating the city’s Home Sharing Ordinance, but the city only issued 300 citations.

Orenstein said it won’t be easy in Inglewood.

“You have to jump through hoops to have an Airbnb,” she said. “Apply for permits, do inspections, pay your taxes every month. It has to be done right.”

Despite complaints from customers about rising electric bills, the California Public Utilities Commission voted 4 to 1 on Thursday to keep profits at Southern California Edison and the state’s other big investor-owned utilities at a level that consumer groups say has long been inflated.

The commission vote will slightly decrease the profit margins of Edison and three other big utilities beginning next year. Edison’s rate will fall to 10.03% from 10.3%.

Customers will see little impact in their bills from the decision. Because the utilities are continuing to spend more on wires and other infrastructure — capital costs that they earn profit on — that portion of customer bills is expected to continue to rise.

The vote angered consumer groups that had detailed in filings and hearings at the commission how the utilities’ return on equity — which sets the profit rate that the companies’ shareholders receive — had long been too high.

Among those testifying on behalf of consumers was Mark Ellis, the former chief economist for Sempra, the parent company of San Diego Gas & Electric and Southern California Gas. Ellis estimated that the companies’ profit margin should be closer to 6%.

He argued in a filing that the California commission had for years authorized the utilities to earn an excessive return on equity, resulting in an “unnecessary and unearned wealth transfer” from customers to the companies.

Cutting the return on equity to a little more than 6% would give Edison, Pacific Gas & Electric, SDG&E and SoCalGas a fair return, Ellis said, while saving their customers $6.1 billion a year.

The four commissioners who voted to keep the return on equity at about 10% — the percentage varies slightly for each company — said they believed they had found a balance between the 11% or higher rate that the four utilities had requested and the affordability concerns of utility customers.

Alice Reynolds, the commission’s president, said before the vote that she believed the decision “accurately reflects the evidence.”

Commissioner Darcie Houck disagreed and voted against the proposal. In her remarks, she detailed how California ratepayers were struggling to pay their bills.

“We have a duty to consider the consumer interest in determining what is a just and reasonable rate,” she said.

Consumer groups criticized the commission’s vote.

“For too long, utility companies have been extracting unreasonable profits from Californians just trying to heat or cool their homes or keep the lights on,” said Jenn Engstrom at CALPIRG. “As long as CPUC allows such lofty rates of return, it incentivizes power companies to overspend, increasing energy bills for everyone.”

California now has the nation’s second-highest electric rates after Hawaii.

Edison’s electric rates have risen by more than 40% in the last three years, according to a November analysis by the commission’s Public Advocates Office. More than 830,000 Edison customers are behind in paying their electric bills, the office said, each owing a balance of $835 on average.

The commission’s vote Thursday was in response to a March request from Edison and the three other big for-profit utilities. The companies pointed to the January wildfires in Los Angeles County, saying they needed to provide their shareholders with more profit to get them to continue to invest in their stock because of the threat of utility-caused fires in California.

In its filing, Edison asked for a return on equity of 11.75%, saying that it faced “elevated business risks,” including “the risk of extreme wildfires.”

The company told the commission that its stock had declined after the Jan. 7 Eaton fire and it needed the higher return on equity to attract investors to provide it with money for “wildfire mitigation and supporting California’s clean energy transition.”

Edison is facing hundreds of lawsuits filed by victims of the fire, which killed 19 people and destroyed thousands of homes in Altadena. The company has said the fire may have been sparked by its 100-year-old transmission line in Eaton Canyon, which it kept in place even though it hadn’t served customers since 1971.

Return on equity is crucial for utilities because it determines how much they and their shareholders earn each year on the electric lines, substations, pipelines and the rest of the system they build to serve customers.

Under the state’s system for setting electric rates, investors provide part of the money needed to build the infrastructure and then earn an annual return on that investment over the assets’ life, which can be 30 or 40 years.

In a January report, state legislative analyst Gabriel Petek detailed how electric rates at Edison and the state’s two other biggest investor-owned electric utilities were more than 60% higher than those charged by public utilities such as the Los Angeles Department of Water and Power. The public utilities don’t have investors or charge customers extra for profit.

Before the vote, dozens of utility customers from across the state wrote to the commission’s five members, who were appointed by Gov. Gavin Newsom, asking them to lower the utilities’ return on equity.

“A profit margin of 10% on infrastructure improvements is far too high and will only continue to increase the cost of living in California,” wrote James Ward, a Rancho Santa Margarita resident. “I just wish I could get a guaranteed profit margin of 10% on my investments.”