South Korea's FSS calls on banks to extend assistance to distressed real estate companies
South Korea's FSS calls on banks to extend assistance to distressed real estate companies Due to increasing concern about the risks
On March 21, 2567, Bloomberg News reported that South Korea's Financial Supervisory Service (FSS) urged financial institutions to expand financial support for troubled real estate developers amid growing concerns about the risks posed by problematic real estate projects.
Lee Bokhyun, director of the Financial Supervision Service (FSS) of Korea, told financial and construction companies that...
“Profitability has decreased significantly. is increasing This is due to high interest rates and construction costs. Financial institutions should consider expanding the size of the PF Stabilization Fund while actively restructuring the distressed loans they support.”
Lee Bokhyun's comments come as debt risks increase in real estate projects. Most of which have high utilization. amidst the real estate market that continues to decline
South Korea is trying to prevent the problem from spreading widely. After a debt default in 2565 by the developer of the Legoland theme park. And most recently, the liquidity problem of the builder Taeyoung Engineering & Construction Co.
Delayed projects are a huge burden on both construction and financial companies. While noting that the current default rate of up to 2% is manageable. Both financial institutions and companies should make joint efforts. To restructure projects that have problems
Reference: bloomberg.com
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