Korea Braces for More Loan Failures Amid Global Banking Slump
- FSS governor says events like SVB collapse unlikely in Korea
- Property slump may hurt consumption; systemic risk unlikely
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The slump in South Korea’s property market may lead to defaults on project-financing loans, but policymakers have put in place measures to cope following an unexpected credit crunch last year, according to the nation’s financial watchdog chief.
The authorities have assessed some 5,000 real estate projects relying on these loans, and are ready to act swiftly after getting “vaccinated” by a crisis triggered by a theme park developer’s default last year, Lee Bokhyun, governor of the Financial Supervisory Service, said in his first media interview since taking the helm in June last year.