Financial Supervisory Service Urges Secondary Financial Institutions to "Facilitate PF Financial Support"

[Asia Economy Reporter Song Seung-seop] On the 7th, the Financial Supervisory Service (FSS) held a meeting between the secondary financial sector and real estate project financing (PF) to urge smooth financial support. This comes as rising interest rates and raw material prices have increased difficulties in real estate development projects.

The meeting held at the FSS that day was attended by officials from securities firms, savings banks, and specialized credit finance companies. The securities firms' meeting, which started at 10 a.m., was chaired by the Director of the Capital Market Supervision Bureau, while the meeting with small and low-income financial companies held at 2 p.m. the same day was presided over by the Deputy Director in charge of small and low-income finance. At the meeting, financial companies expressed concerns about the increased possibility of insolvency in real estate PF due to deteriorating market conditions and emphasized the need for active risk management.

In response, the FSS stressed that during difficult times, it is an important role of finance not only for financial institutions to strengthen their loss absorption capacity but also to supply funds smoothly and effectively where needed. They also requested that loans be handled smoothly for normal PF projects.

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