Choi Sang-mok's Financial Sector New Year's Address: "Ensure Full Provisioning and Soundness Management"

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, urged the new year’s financial sector personnel to "thoroughly manage soundness, including expanding provisions," and called for risk management related to real estate project financing (PF).

On the 3rd, Choi attended the '2024 Financial Sector New Year Meeting' held at Lotte Hotel in Seoul and stated, "Regarding recent concerns surrounding real estate PF, I ask you to reconsider and supplement the current business methods and debt management of financial companies."

[Image source=Yonhap News]

Amid Tae-young Construction, ranked 16th in construction capability evaluation, applying for a workout due to real estate PF insolvency, he ordered financial institutions to manage related risks. Choi said, "Please ensure thorough soundness management, including expanding provisions to strengthen loss absorption capacity and accumulating countercyclical capital buffers starting this year."

Choi added, "Although domestic and international economic conditions remain challenging, especially at times like these, I hope you become a strong supporter of the innovation ecosystem by fostering science and technology, advanced industries, revitalizing ventures and startups, and building growth ladders for small and medium enterprises." He also said, "The government will support the financial sector’s efforts through policy financing supply totaling a record 570 trillion won."

Regarding the financial sector’s announcement last month of a 2 trillion won win-win finance support plan, he said, "Once again, thank you, and I hope it will be implemented with a high sense of impact as soon as possible." He also expressed the government’s commitment by stating, "For high-interest loans to small business owners in the secondary financial sector, the government will actively support interest refunds by investing 300 billion won in fiscal funds."

This content was produced with the assistance of AI translation services.