Korean Lenders to Clean Up Bulk of Property Loans Amid Turmoil
- Loans of 16.2 trillion won to be cleaned up in first half 2025
- The debt is a potential threat for local financial markets
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South Korea’s financial market regulator is increasing pressure on lenders to clean up troubled real estate loans as the nation’s political turmoil hurts economic growth.
Korean financial institutions will “organize and restructure” 16.2 trillion won ($11.2 billion) of loans in the first half of 2025, the Financial Supervisory Service said in a statement Thursday. That constitutes more than 70% of their 22.9 trillion won of exposure in risky real estate projects as of end-September.