(Seoul=NSP News Agency) eunyoung Huh Journalist = It’s been reported that corporate loans given by big savings banks rose to the peak of 77%. Accordingly, the size of real estate project financing surpassed 10 trillion won. Such bank insolvency is making people more concerned about bank run where a large number of people withdraw money simultaneously for fear of losing their money.
In the first half of this year, Welcome Bank ranked the highest for the increased corporate loans of 76.73% among big savings bank, followed by OK Savings Bank 65.13% and SBI Savings Bank 58.35%, compared to that of last year.
The balance of corporate loans of the all 79 savings banks totalled 70.6845 trillion won, exceeding 70 trillion won for the first time.
The balance of savings banks’ real estate project financing has increased 5.6 trillion won between in late 2018 and the first half of this year. The balance of the all loans surpassing 5 billion won per case - taking corporate, household and other loans into account - has also surged by 10.3 trillion won during the same period.
As experts are weighing more on the possibility of an additional big step by the Bank of Korea in interest rate by 0.5%p, more risks are being put to real estate PF insolvency.
Also the default of the asset-based commercial paper (ABCP) for the construction of Lego Land amusement park issued and guaranteed by Gangwon Province is adding more concerns on serial insolvency.
NSP News Agency eunyoung Huh Journalist firstname.lastname@example.org
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