Banks Lending to Osstem Begin Credit Rating Reassessment... Authorities Also Monitoring

Banks Lending to Osstem Launch Full Credit Rating Evaluation
Checking Loan Recovery Status, Financial Supervisory Service Also Begins Monitoring

[Asia Economy Reporter Kwangho Lee] Domestic banks have begun the process of reassessing the credit rating of Osstem Implant, which was involved in a large-scale embezzlement case amounting to 190 billion KRW.

A representative of one creditor bank said on the 5th, "We are monitoring the situation, including the progress of investigations by the police and prosecution, in preparation for potential issues in loan recovery," adding, "It is not yet the stage to decide on immediate loan recovery, but a credit rating reassessment is inevitable."

Credit rating reassessments are conducted when a company's situation has significantly improved or deteriorated, and also when a major incident occurs that could impact the stock price.

According to the Financial Supervisory Service's electronic disclosure system, as of the end of the third quarter last year, Osstem Implant had borrowed over 300 billion KRW from banks.

Woori Bank has the largest loan amount at 107.3 billion KRW, followed by Korea Development Bank with 80.4 billion KRW, Export-Import Bank of Korea with 25 billion KRW, Shinhan Bank with 21.2 billion KRW, Industrial Bank of Korea with 19.3 billion KRW, and Kookmin Bank with 4.6 billion KRW. It is reported that banks plan to demand countermeasures from Osstem Implant during the credit rating reassessment process.

The Financial Supervisory Service has started monitoring whether Osstem Implant will revise its financial statements. However, it stated that it has not decided to investigate allegations of false submission of the third quarter financial statements last year, nor is it considering canceling the registration of Induk Accounting Corporation, the designated auditor for Osstem Implant's listed audit.

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