South Korea’s financial market watchdog is assessing real estate-related risks over fears that the number of overdue loans could rise.
The Financial Supervisory Service has asked local securities firms, which are akin to investment banks, to swiftly write off or restructure non-performing loans to manage debt delinquency rates and accumulate enough capital for absorbing potential losses.
Deputy governor Hwang Seon-oh said: “The amount of overdue real estate project financing at securities firms is currently judged to be at a tolerable level, but I request for thorough and pre-emptive preparation, with the worst case scenario in mind, to prevent any trouble.”
