The delinquency ratio on real estate project financing (PF) loans slightly rose in the fourth quarter, data showed Friday, amid concerns of possible risks stemming from such loans.
The delinquency ratio on real estate PF loans came to 2.70 percent as of end-December, up 0.28 percentage point from 2.42 percent three months earlier, according to the data from the Financial Supervisory Service (FSS).
The total value of outstanding loans climbed to 135.6 trillion won (US$102 billion) from 134.3 trillion won over the cited period.
Real estate PF loans have become a major risk factor of the financial sector amid a prolonged slump in the property market due to price hikes.
Taeyoung Engineering and Construction, the country’s 16th largest builder, was forced to apply for a debt restructuring program in late December after it faced a liquidity shortage due to real estate PF loans.
“The delinquency ratio on PF loans rose slight to 2.7 percent as of end-December, compared with 2.42 percent tallied at end-Septemb
er, but it generally continued to remain stable,” the financial regulator said in a press release, adding the government is considering and pushing for “various policy steps” to help stabilize the market.
In the latest of such efforts, FSS chief Lee Bok-hyun held a meeting with senior officials from local lenders and construction firms Thursday, where he called for swift and all-out efforts to minimize the potential fallout from real estate loans.
Source: Yonhap News Agency