South Korean Government Urges Swift Business Restructuring Amid Real Estate PF Loan Risks

SEOUL: The South Korean government is calling for urgent business restructuring to mitigate risks associated with real estate project financing (PF) loans. First Vice Finance Minister Kim Byoung-hwan emphasized the need for prompt action during a meeting with industry officials.

According to Yonhap News Agency,Despite recent signs of decreasing risks in the real estate PF market, the volume of outstanding loans remains significant. Kim highlighted the importance of restructuring unprogressive projects, particularly those hindered by rising costs and conflicts among involved parties. The government plans to support these efforts by providing necessary liquidity and continuing enhanced market monitoring. This call to action comes in the wake of Taeyoung Engineering and Construction Co. commencing a debt workout program due to a liquidity crisis, high interest rates, and a declining property market.

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