South Korea's Bank of Korea warns of escalating risks for developers amid a property market slump due to restrictive interest rates.
South Korea's Bank of Korea (BOK) warns of escalating risks for developers amid a property market slump that's impacting their earnings. The BOK cites difficulty in borrowing and repaying debt, including short-term loans, due to its restrictive interest rates since January 2023. The bank also notes that the delinquency ratio on short-term loans for construction projects has risen to 3.55% as of end-March, posing significant liquidity risks on securities firms.
June 26, 2024
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