Lee Bok-hyun "Will Overcome Resistance in PF Bad Debt Resolution... No Crisis Like Taeyoung Construction"
by Yoo Jaehoon
Published 05 Feb.2024 14:28(KST)
Updated 05 Feb.2024 15:27(KST)
Need for System Improvement Such as 'Disposition by Meaningful Minority Consent in Auction and Public Sale'
Business Feasibility Evaluation System Should Be Improved in Q1 and Q2 to Adjust Market Later
Lee Bok-hyun, Governor of the Financial Supervisory Service, said on the 5th regarding the cleanup of bad real estate project financing (PF), "If the market's concerns are not reasonable or worth listening to but rather resistance based on vested interests, we will break through even if it is somewhat strong."
Lee Bok-hyun, Governor of the Financial Supervisory Service, is holding a press conference on the 4th at the Financial Supervisory Service in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@
원본보기 아이콘On the same day, Lee held a briefing session at the headquarters in Yeouido, Seoul, regarding the 2024 business plan, stating, "Our financial market must operate smoothly during the period when the real economy is rebounding. The event horizon is not far away."
Regarding the delay in disposition through auction or restructuring work at multiple project sites, Lee said, "The current creditor agreement does not allow auction or disposition without the consent of all creditors. In the future, even if the majority do not want it, we will improve the system so that a meaningful minority can proceed with auction or disposition if they wish," adding, "In the past, we were lenient toward the circumstances of stakeholders related to the project sites, but from now on, we will proceed relatively on principle."
He also mentioned the improvement of the project evaluation system underway through the 'Project Feasibility Evaluation Reform Task Force (TF),' saying, "If possible, the system should be improved in the first or second quarter so that the market can adjust after the second quarter."
Regarding the possibility of recurrence of adverse events like the Taeyoung Construction workout (corporate financial restructuring) incident, he said, "Since the end of 2022, we have been continuously monitoring the financial industry, the real estate industry with vulnerabilities, and the financial status of major construction companies," and added, "We cautiously predict that there will be no liquidity crisis in construction companies that would shock the market to the level of Taeyoung Construction in the first half of the year."
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