Speculation runs high that Taeyoung Engineering & Construction (Taeyoung E&C) is close to filing for corporate restructuring due to a liquidity crisis triggered by a soured real estate project financing (PF) deal.
The default rate on construction-related loans is looming large for major banks in Korea, as lenders face increasing delinquency rates for on loans made to firms in the construction sector. Market watchers and financial authorities are closely monitoring the situation over concerns that an uncontrolled risk stemming from the cash-stripped real estate market might expand the scope of the crisis to the overall economy next year.
President Yoon Suk Yeol named Choi Sang-mok, his former senior secretary for economic affairs, to head the Ministry of Economy and Finance, Monday, in a Cabinet reshuffle ahead of next year’s parliamentary elections.
Heads of financial authorities have once again called on domestic financial groups to take on greater social responsibility, pressuring the companies to lower the burden on small and medium-sized business owners stemming from soaring interest rates.
Korean stocks ended more than 2.3 percent lower Tuesday as investors took profit following the previous session s sharpest-ever daily gains prompted by the country s reimposing of .