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Photo = FSS |
[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) has decided to conduct on-site inspections of capital companies this week, responding to ongoing concerns about liquidity in the real estate project financing (PF) sector.
According to financial authorities on August 11, the FSS's inspections will focus on capital companies due to rising concerns over their liquidity.
Financial authorities have identified that delinquency rates on PF loans at some small and medium-sized companies have surged to 30-50% as of the end of June. A stress test report by NICE Investors Service has indicated that the estimated maximum potential loss from real estate PF for capital companies is the highest among second-tier financial institutions, reaching 5 trillion won.
According to the FSS's management statistics information system, out of 51 capital companies engaged in leasing and installment financing, 11 had delinquency rates exceeding 10% as of the end of March. Among the smaller asset-sized firms, two had rates in the 20% range, and one exceeded 30%, reaching up to 88.9%. However, these rates have generally decreased across the industry as of the end of June.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
