Financial Services Commission Chairman Ko Seung-beom, on China Evergrande Crisis: "Closely Responding to Risk Expansion"

[Asia Economy Reporter Ji Yeon-jin] On the 22nd, Ko Seung-beom, Chairman of the Financial Services Commission, urged, regarding China's Evergrande Group, which has recently raised bankruptcy concerns, "As the overheated global asset market adjusts along with global tightening movements such as tomorrow's U.S. Federal Open Market Committee (FOMC) meeting, related risks may expand, so we will closely monitor and respond to related trends."

At a meeting to review related trends with relevant officials that day, Chairman Ko said, "At present, many experts believe that the Evergrande Group issue is unlikely to spread as a systemic risk to the global financial market," but he added the above statement.

Evergrande Group is China's second-largest real estate development group, listed on the Hong Kong Stock Exchange. With a debt scale of about 300 billion dollars, bankruptcy concerns have arisen. The global credit rating agency S&P stated, "If the Evergrande issue leads to the bankruptcy of other large real estate developers and transfers as a systemic risk to the Chinese economy, the Chinese government may intervene, but at present, Evergrande's bankruptcy does not seem likely to spread into such widespread risks."

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