Korea Unveils Steps to Quicken Project Finance Restructuring
- FSC expects only 2-3% of project finance sites to be disposed
- Sites late repaying debt by six months or more to be sold
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South Korean authorities unveiled measures on Monday to support an “orderly soft landing” for real estate project-finance debt, as rising delinquencies in the sector threaten to be a drag on the economy.
The government will refine criteria used to evaluate the feasibility of real estate project finance sites, seeking to pinpoint which developments are no longer viable and should be sold off in a restructuring process, according to a joint statement by the nation’s Financial Services Commission and Financial Supervisory Service.