Financial authorities say there is no need to worry about delinquency rates and real estate portfolio concerns for foreign financial companies.

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Foreign financial companies and video conferences… sharing the current situation of the Korean financial market,

[Seoul=Newsis] Kim So-young, Vice Chairman of the Financial Services Commission, is giving a congratulatory speech at the 2nd seminar on corporate value creation support held at the Korea Exchange in Yeouido, Seoul on the afternoon of the 2002. (Photo = Financial Services Commission) 2024.05.02. [email protected] * Redistribution and DB Prohibition,
‘[Seoul=Newsis] Kim Hyung-sub, Reporter = Financial authorities emphasized the strong stability of the Korean financial market, dispelling concerns over real estate project financing (PF) and bank delinquency rates in relation to foreign financial institutions.’,

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‘The Financial Services Commission and the Financial Supervisory Service announced that on the 7th, Vice Chairman Kim So-young of the Financial Services Commission presided over a video conference connecting foreign financial companies, including investment banks (IB) operating in Korea and Singapore, to exchange opinions on the economic situation and overall financial market of Korea.’,

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‘Vice Chairman Kim stated, “The Korean economy is entering a recovery phase, and the financial market is maintaining a stable appearance,” and said, “We will smoothly proceed with current financial issues such as the landing of real estate PFs, strengthening the soundness of financial companies, and the corporate value creation program.”‘,

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‘Regarding the financial market situation, Vice Chairman Kim emphasized, “Despite various domestic and international uncertainties, the Korean financial market is maintaining a stable trend,” and said, “Financial companies have sufficient loss absorption capacity, and the government also possesses ample means to respond to crisis situations, such as the 94 trillion-won market stability program. Therefore, we will be able to maintain a stable market trend without any disruption in the future.”‘,

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‘On the recent rise in bank delinquency rates, he stressed, “Although the delinquency rate is slightly rising at present, it is at a level well below the past average, which is sufficiently manageable. He explained, “In major foreign countries, delinquency rates are rising during the process of monetary tightening, which is somewhat inevitable as part of the resolution of accumulated financial imbalances during the pandemic period.” He emphasized, “Considering the recovery trend of our economy and the response capabilities of the financial sector, there is no need to worry at all.”‘,

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‘At the meeting, financial authorities shared the progress and future plans of key policies currently being pursued, such as real estate PF and corporate value creation, with foreign financial companies.’,

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“Regarding real estate PF, it was emphasized that there have been no major changes in the outstanding balance of financial institution loans and the delinquency rate is being maintained at a level that is sufficiently tolerable. Regarding PF businesses, they explained under the motto of ‘orderly landing’ that funds will be smoothly supplied to normal businesses, and for businesses with insufficient viability, restructuring will continue to be pursued.”,

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‘Regarding household debt, they reported that the ratio of household debt to GDP has been declining for two consecutive years, showing a stable trend due to real estate market stability and financial authorities’ management.’,

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‘Regarding the soundness of small financial institutions such as savings banks, mutual financial companies, and specialized credit financial institutions, they introduced policy efforts such as additional creation of sector-specific PF funds, improvement of debt collection system to promote the sale of individual and individual-business delinquent receivables, expansion of channels for the sale of delinquent receivables by sector, and diversification of funding sources.’,

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“They also explained the smooth implementation of ‘corporate value creation support measures’ for capital market advancement, including the revision of stewardship codes, announcement of incentives for outstanding participants in value creation, publication of guidelines for enhancing corporate value improvement plans, and plans for future announcements of tax support measures for value creation, development of the Korea Value-up Index, and listing of related ETFs.”,

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‘Vice Chairman Kim said, “It is important to enhance the international credibility of Korean finance by fully explaining the efforts of the Korean government and the financial sector for financial market stability and market advancement,” and said, “We plan to have more opportunities for communication to prevent unnecessary misunderstandings and concerns about the Korean economy and financial market and ensure that Korea’s efforts are more widely recognized internationally.”‘,

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