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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] The report showed that Korean financial firms lost about KRW 2.41 trillion in alternative investments in overseas real estate at the end of last year amid a growing sense of insolvency in overseas commercial real estate. The balance of alternative investment reached 58 trillion won.
According to the Financial Supervisory Service (FSS) on the 5th, the balance of overseas real estate alternative investment by domestic financial firms stood at 57.6 trillion won as of the end of last year, up 2.1 percent (1.2 trillion won) from 56.4 trillion won three months ago. This is 0.8% of the financial sector's total assets of about 6,859 trillion won.
In terms of investment balance by industry, insurance accounted for more than half (54.4%) of KRW 31.3 trillion. Banks accounted for 11.6 trillion won (20.2%), securities 8.8 trillion won (15.2%), and mutual finance 3.7 trillion won (6.4%). By region, North America, including the U.S. and Canada, had the largest share of 34.8 trillion won (60.3%), followed by Europe (11.5 trillion won, 20%) and Asia (4.2 trillion won, 7.3%).
At the end of last year, the Financial Supervisory Service found that EOD occurred from KRW 2.41 trillion (6.85%) out of KRW 35.1 trillion invested in a single workplace (real estate) by a local financial company. The loss of due profit means that the creditor starts collecting the loan before maturity if the debtor fails to pay back interest or principal, or if the real estate price falls and lacks collateral value. At this time, the entire investment was lost I can't see. It can be resolved by adjusting loan conditions between investors or extending maturity.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
