The FSC and FSS will use a new evaluation standard and offer incentives to construction companies in a bid to promote restructuring.
The outstanding real estate PF loans grew 1.4 trillion won ($1.05 billion) over three months to 135.6 trillion won at the end of December, according to Financial Supervisory Service (FSS) data on Friday.
Finance Minister Choi Sang-mok urged financial authorities to carefully monitor and prepare responses to the rate decisions by both the U.S. Federal Reserve and the Bank of Japan.
The volume of card spending reached 1,139.3 trillion won, although card companies' profit shrank on the back of bad loans and interest.
But such makeshift measures aimed at helping self-owned businesses stay afloat cannot fundamentally solve their problem.
The overdue loans for 3.36 million self-employed jumped 49.7 percent to 27.38 trillion won ($20.57 billion) as of the end of December from 18.29 trillion won a year earlier.
The nation's four major financial firms padded their debt provisions amid concerns over project financing defaults.
High interest rates are squeezing Korea’s economy across the board, with the default rates for commercial papers surging as well as the number of foreclosure filings rising in the country.
Korea’s financial watchdog is strengthening its probe into companies connected to real estate project financing (PF) loans to address credit risks.
The Korean government will not use public funds to finance the ailing Taeyoung Engineering and Construction. It urged the company to implement self-rescue plans and gain creditors' trust in order to resolve its liquidity crisis.
Korea JoongAng Daily Sitemap