-
Feb 05, 2009
- Korea Economy Overview
- Ladies and gentlemen, I would like to welcome all of you and thank you for taking the time to be with us today.My presentation today largely consists of three parts.Firstly, I will give you a brief overview of Korea’s real economy and financial market and move on to talk about newly emerging risk factors in the Korean economy and their effect on the economy.Then, I will close by introducing how the Korean government is responding to the economic challenges.Now, let me start with the current status of the Korean economy and financial market.First of all, let me talk to you about the current status of Korea’s real economy.As some foreign investors are concerned, it is true that Korea’s real economy is fast deteriorating. Domestic demand is slowing down rapidly with 19.8 percent fall in December industrial output from a year earlier as well as 7.0 percent decline in consumer goods sales. Exports in December also fell by 17.9 percent year-on-year (by 29 percent according to the estimation for the period from Jan. 1 to Jan. 20).However, let me emphasize that such economic slowdown is not limited to Korea and is witnessed commonly around the world following the global financial crisis. The Korean economy is doing rather well compared to other Asian countries like Hong Kong, Taiwan and Singapore.If we compare December industrial output, Korea saw 19.8 percent fall while Taiwan and Singapore suffered 32.4 percent and 13.5 percent decline respectively. Even in terms of export, which is one of the main causes of concern, we see that Taiwan and Singapore have recorded greater fall than Korea with 41.9 percent and 20.8 percent decline respectively.Moreover, Korea is maintaining relatively low unemployment rate of 3.3 percent as of last December.However, things are looking better in the financial market. To our relief, the global financial market volatility has eased slightly, improving investor confidence and financial stability in Korea.The Korean stock market has recent
-
Jan 12, 2009
- IFSB-FSC/FSS to Host Seminar on Islamic Finance in Seoul
- The Islamic Financial Services Board (IFSB) and the Financial Services Commission/Financial Supervisory Service will jointly host the Seminar on Islamic Finance in Seoul from January 13 to 14, 2009, at the Sogong-dong Lotte Hotel. The FSC/FSS joined the IFSB as an Observer member onAugust 8, 2008, and through this seminar hope to develop a growing interest in Islamic finance.Five separate sessions, which include presentations and discussions, are scheduled during the two-day seminar. Among the topics to be discussed are potential legal and organizational issues for non-Islamic countries attempting to implement Islamic financial systems and their solutions, how to use Shari’ah in cooperation with the current regulatory system, recent developments in the Islamic bond market and issues related to credit rating, and challenges and opportunities for Korea.Approximately 300 participants from home and abroad, including 17 speakers, 14 from abroad, together with participants representing the government, financial institutions, and academic institutions, are expected to attend the seminar. Dr. Jun Kwang-Woo, Chairman of the FSC, will deliver the opening remarks of President Lee Myuang-Bak.The Seminar on Islamic Finance will provide an opportunity to participants to gain comprehensive and practical knowledge of Islamic finance while also offering the chance to network with Islamic finance regulators and financial experts.The IFSB is an international standard-setting organization that promotes and enhances the soundness and stability of the Islamic financial services industry. Founded in Kuala Lumpur, Malaysia on November, 2002, the IFSB, as of December, 2008, has 178 members from 34 countries.* Please refer to the attached PDF for details.
-
Jan 09, 2009
- Review of Financial Assistance to SMEs
- I. Review of Financial Assistance to SMEs in 20081. Banks Loans to SMEs(2008) Outstanding amount of loans to SMEs by 18 domestic banks increased by KRW 52.4trl. (from KRW 370trl in 2007 to KRW 422.2trl in 2008)(December 2008) With the year-end effect, the amount of SMEs loans decreased by KRW 1.8trl. However, when including special set-off between loans and deposits carried out to support SMEs (KRW 0.7trl), amortization and sell-off of bad debts (KRW 0.9trl), the actual amount of SME loans was decreased only by KRW 70.9bn.* With the year-end effect (settlement of financial statements at the end of the year, settlement of B2B transaction, etc.), SMEs loans tends to decrease usually in December.When comparing the average decrease amount of SME loans in December for the past 5 years (KRW -2.8trl) with the decreased amount in December last year (KRW -3.6trl), it is not so noticeable.2. Fast-Track (Special Assistance Program to Tackle Liquidity Problems of SMEs)KRW 2.8trl was provided to 1,672 companies through the Fast Track Program from October 13 to December 31, 2008.KRW 1.4trl was provided to 413 companies which experienced loss from currency option such as KIKO.Assistance through the Fast Track Program has been accelerated since last December; the number of assisted enterprises increased by 2.5 times.3. Issuance of P-CBOKRW 1trl of P-CBO was issued in 2008 to help solve financial difficulties of SMEs which could not issue corporate bond due to their poor credit rating.Corporate Bond Market Stabilization Fund underwrote the 3rd issuance, which benefited joined enterprises with lower issuing rate (from 8.4% to 6.6%) and lower additional rate. (from 50bp to 5bp)4. Consultation on SMEs' Financial DifficultiesSince the opening of the ｢Consultation Center for Financial Difficulties of SMEs｣, the accumulated number of consultation cases reached 1,060. (including the consultation carried in related organization of banks)Banks admitted 526 cases (49.6%) and provided KRW
-
Dec 26, 2008
- “BANK CAPITAL EXPANSION FUND(A TENTATIVE TERM)” SCHEME
- Mainly led by the BOK in consultation with the FSC, the plan to set up the “Bank Capital Expansion Fund” of KRW20 trillion is currently under close review. The target date is January 2009.The fund is not obligatory for commercial banks to subscribe to; it is entirely up to individual banks to decide whether to utilize the Fund.1. Funding SchemeThe capital needed to establish the "Bank Capital Expansion Fund" will be generated from the BOK (approx. KRW10 trillion in loans), investors including institutional investors (approx. KRW8 trillion in investment), and the Korea Development Bank (approx. KRW2 trillion in investment).Funds will be raised on a capital call basis: for each subscription by banks the investing parties will inject the funds in proportion to their commitment ratio.The BOK is currently reflecting on optimal ways to supply funds to the Bank Capital Expansion Fund. Details including the exact amount are to be discussed with the FSC before issuing the finalized scheme.Meanwhile, the government plans to encourage investments from both private and institutional investors in January, reassuring them of the Fund's stability and profitability.2. Management of the FundWhen a bank requests for the funding, the Fund will supply funds in the form of purchasing the bank’s preferred stocks, hybrid capital, or redeemable preferred stocks of banks.To help raise banks' Tier 1 capital, the Fund will buy mainly preferred stocks and hybrid capital. These stocks and capital will be redeemable when the bank exercises the call option after a designated length of period (five years or more). In order to help reduce banks' funding cost the Fund plans to utilize BOK loansTo minimize the external intervention in the subject banks’ management, the Fund will prescribe following requirements:①Seek self-rescue measures, especially to reduce expenses;②Increaselending to low-income borrowers and mid- to long term loans;③ Abstain from asset expansion schemes and increase
-
Nov 25, 2008
- The Global Financial Crisis & Korea’s Policy Response
- IGE/IMF International Conference Luncheon RemarksThe Global Financial Crisis Korea’s Policy ResponseDr. Jun Kwang-Woo Chairman Financial Services CommissionGREETINGSDistinguished guests, and ladies and gentlemen,I am delighted to be with you this afternoon, and I thank IGE Chairman Kim Pyung-Joo and President Lee Young-Tak and Dr. Mahmood Pradhan from the IMF for organizing today’s conference and inviting me to speak. I also thank speakers and distinguished participants who are with us today.In light of the deepening distress in the global financial markets, today’s conference, entitled “Lessons from the Recent Global Financial Crisis: Its Implications for the World and Korea,” is both timely and of great interest to every one of us.So I am glad to join you and share with you my perspectives on how the financial crisis emerged, what lessons we can draw from it, and where we go from here. GLOBAL FINANCIAL CRISIS KOREAN ECONOMYThe global financial crisis started with collapsing asset prices followed by a debilitating credit crunch. Expansive monetary policy by the U.S. Federal Reserve since 2001 and a surge in foreign capital inflow since 2004 kept interest rates at record low levels.Financial deregulation also swept across the major developed countries beginning in the 1980s. During this time, capital market liberalization also picked up the pace among the emerging countries.This process ultimately led to sharp increases in financial institutions’ leveraged activities and asset inflation. In particular, as financial institutions increasingly employed aggressive asset securitization and complex derivatives to sustain high profit growth, a host of new risks began to weigh on the financial system. For their part, regulators did not fully grasp the situation and preempt the risks. And the global nature of the financial system meant that the systemic risks would be felt and shared by markets around the world.Domestic financial marketsWe are now getting clear i
-
Nov 24, 2008
- Statement by the FSC on the BOK's Liquidity Support
- The FSC highly commends the Bank of Korea’s recent preemptive decision to provide liquidity support to companies investing in the Bond Market Stabilization Fund (BMSF). It is intended not only to stabilize the financial market in general, but also to help implement the BMSF in particular, through close cooperation with the government. It is thought that the decision will ease financial companies’ efforts in raising funds for their investments along with any worries of establishing liquidity in the bond market. Thus, the government plans to speedup the process of building the BMSF. Through careful discussions between financial companies, a decision will be made on the participating institutions, the total investment amount, and the specific amount shared by each institution. The BMSF will be set in motion very shortly. The participating institutions will mainly be composed of banks, insurance companies, and securities companies.As already announced, the primary purpose of the Fund is to provide liquidity to quality corporations that are experiencing temporary liquidity shortages due to the current market credit crunch. P-CBOs that have been credit-enhanced by KODIT and KIBO, high-rate ABCPs based on Project Financing, credit financing bonds, and corporate bonds will be the first to be considered on the purchasing list. The issuers will be requested to make their own restructuring efforts when necessary. The details of fund composite, the managing institution, and the priority of trade will be shortly decided after discussions between the participating parties. The Financial Services Commission (FSC) and the Financial Supervisory Services (FSS) will oversee operations from the beginning to ensure investor protection and market stability. Mr. Jun Kwang-Woo, the FSC chairman, has requested that the vice-chairman start meeting with related financial associations and the FSS as of Nov. 25th to discuss detailed plans to propel the project as soon as possible.*Please re
-
Nov 14, 2008
- Reporters' Discussion Points with Chairman of the Financial Services Commission
- 1. Recent Market Conditions International Markets- The global markets seem to be stabilizing after the announcement of the U.S. government’s bailout plan and the currency swap agreements signed between the key nations around the world.- Some uncertain elements still exist in the market which are expected to remain until the first quarter of 2009.- With regards to hedge funds managed by major institutional investors, there are likely to be adjustments made to the portfolios early next year which are likely to lead to swift changes in sovereign credit ratings around the globe.Domestic Markets- In response to the crisis, the Korean government utilizing all its resources and departments including the Bank of Korea (BOK), and the regulatory bodies has made devoted efforts to stabilize the domestic financial market.- To provide foreign currency liquidity to financial institutions, - We have carried out a list of actions; guaranteeing external debt payments by local banks; providing foreign currency liquidity using the Swap market; and supporting export financing through the EXIM Bank.- With respect to providing liquidity of domestic currency,- The BOK has acted aggressively by lowering the interest rate 3 times since October 9th, totaling 125bp, and expanding the number of RP receivers.- These efforts have cleared an opening in the flow of funds and has dissolved the liquidity freeze.- However, we are in a phase of a frictional credit freeze because of the lack of liquidity still in local funds.- As a result of the economic slowdown, worries of insolvency in weak segments of the economy are increasing market uncertainty.- Thus, the propensity of investors to be risk adverse is freezing the liquidity of corporate bonds and ABCP.⇒ To summarize the current situation and to put it figuratively, a blood transfusion is given to an anemic patient, but due to the hardening of the arteries, the blood is being prevented from spreading throughout the body.2. Direction of Counter
-
Nov 03, 2008
-
Oct 29, 2008
-
Oct 22, 2008
- Interview with the Chairman of the FSC on Bloomberg TV, 21 October, 2008
- Korea Can Give Economy More Help If Needed, Jun SaysBy Bomi Lim and Bernard LoOct. 22 (Bloomberg)South Korea is ready to take more measures torestore confidence in its financial system if needed, including a packageto shore up the economy, the nation's top financial regulator said."The follow-up measures any country can take now are fiscal stimuluspackages, economic boosting measures,'' Jun Kwang Woo, chairmanof the Financial Services Commission, said yesterday in an interview inSeoul. "Korea is in the most comfortable position to do just that.'' The benchmark Kospi stock index slumped to the lowest in more thanthree years and the won fell on concern government measures --including 8 trillion won ($6 billion) to support the construction industry --won't be enough to avert an economic slowdown. Growth probably slowed to a three-year low 3.6 percent inthe third quarter, according to the median estimate of 12 economists surveyed by Bloomberg News."We certainly have the right kind of support mechanism to be used whenever it is needed,'' Jun, 59, said inthe interview. "Given the enormity of this current round of credit crunch around the world, we cannot livewithout having an adequate contingency plan.''South Korea, saddled with a record current account deficit, pledged $130 billion, equivalent to 14 percent ofgross domestic product, to support banks as the global credit crunch saps access to foreign funds. Thegovernment Oct. 19 agreed to give lenders access to $30 billion in U.S. dollars and guarantee $100 billion offoreign-currency debt.Kospi, WonThe Kospi tumbled 5.1 percent to 1,134.86 at the close in Seoul, led by Posco, after Asia's biggest maker ofstainless steel, said it will slash production as demand slows. The index has slumped 40 percent this year.The won, Asia's worst performing currency this year, fell 3 percent to 1,364.45 to the dollar."We may need a stronger package to meaningfully reduce embedded risks in Korea's financial system,''Morgan Stanley analyst
-
Oct 20, 2008
- FSC's Published Response to the Financiual Times Articles “Singking feeling” and "Runs rekindle memories of Asian crisis a deccade ago"(October 14 and 15)
- The Financial Services Commission and the Financial Supervisory Service issue the following corrections, clarifications and explanations for factual errors and questionable assertions made in the October 14 Financial Times news article “Sinking feeling”Purpose of Finance Minister Kang Man-Soo’s meetings with U.S. business executives“Kang Man-Soo, finance minister, is taking his plea for dollars to Wall Street, wherehe is due to meet with executives of banks such as Citigroup and Morgan Stanley.”Minister Kang Man-Soo met with Mr. Stephen Roach, chief economist at Morgan Stanley,and Mr. Robert Rubin, the former Treasury Secretary, on Tuesday, October 14, fordiscussions on the global financial crisis and their market views and assessment. MinisterKang did not meet with Wall Street executives to plea for dollars as the article falselyasserted. He did not take his plea to Wall Street as the news article speculated.POSCO overseas bond offering“Posco, the steel maker, said last week it would sell $1bn of bonds overseas as part ofefforts to stabilise the won.”In a press release dated October 10, POSCO announced that it is planning a US$1 billionoversea bond offering some time in the fourth quarter this year. The press release explicitlystated that the proceeds from the bond offering would be used for future investment andoperating funds. It did not say that the proceeds would be used to stabilize the won as thenews article erroneously reported.Remarks attributed to Finance Minister Kang Man-Soo“Mr. Kang recently told a parliamentary session that ‘apart from exports,everything—including investment, consumption, employment and the currentaccount balance—is showing a trend similar to that seen during the [Asian crisis].”The quote attributed to Minister Kang appears to refer to one of the many remarks he madeat a National Assembly hearing on July 22, 2008, in response to questions on the outlookfor the economy from National Assembly members. What he obse
-
Oct 19, 2008
- Proposed measures to overcome uncertainties in the international financial markets
- 1. Current SituationLehman’s bankruptcy filing (September 14th) sparked a chain reaction that sent globalcredit markets into disarray. Concerns have been spread around the world that loomingcredit crunch and slowdown of the real economy may be protracted. Finding a solutionout of the global credit crunch and economic uncertainties of the global economy willtake quite some time.Consequently, the governments of major economies have made efforts to coordinatetheir policy responses to the crisis and have introduced unprecedented and strongmarket stabilization measures.Despite the recent credit crisis, Korea’s real economy and its financial sector are sound.Exports show a steady growth and conditions of the banking sector remain healthy. Byvarious international standards, Korea’s foreign exchange reserves are sufficient.2. Proposed policy responsesAs other major economies start providing guarantees to inter-bank loans, the Koreangovernment will take similar measures to avoid placing domestic banks at acomparative disadvantage in terms of overseas funding and to allay fears in thefinancial market. The government will pursue market stabilization policies in apreemptive, decisive and sufficient manner to minimize the total cost of implementingthe proposed measures.① The Korean government will provide guarantees to Korean banks' external debt after securing approval of the National Assembly. When Korean banks or its overseasbranches take upon external debt from October 20th this year to June 30th, 2009, thegovernment will offer guarantees to the debt for 3 years. Initially, Korea DevelopmentBank or Korea Eximbank will provide guarantees starting from October 20th until thegovernment wins approval of the National Assembly. After securing the approval, thegovernment will take over the task of providing guarantees.* The total value of guarantees will be capped at USD 100 billion. Domestic banks’external debt reaching maturity until the end of June, 2009 is estimated t
-
Oct 17, 2008
- Corrections, Clarifications and Explanations for October 14 Financial Times News Article “Sinking feeling”
- The Financial Services Commission and the Financial Supervisory Service issue the following corrections, clarifications and explanations for factual errors and questionable assertions made in the October 14 Financial Times news article “Sinking feeling.”*****Purpose of Finance Minister Kang Man-Soo’s meetings with U.S. business executives“Kang Man-Soo, finance minister, is taking his plea for dollars to Wall Street, where he is due to meet with executives of banks such as Citigroup and Morgan Stanley.”Minister Kang Man-Soo met with Mr. Stephen Roach, chief economist at Morgan Stanley, and Mr. Robert Rubin, the former Treasury Secretary, on Tuesday, October 14, for discussions on the global financial crisis and their market views and assessment. Minister Kang did not meet with Wall Street executives to plea for dollars as the article falsely asserted. He did not take his plea to Wall Street as the news article speculated.POSCO overseas bond offering“Posco, the steel maker, said last week it would sell $1bn of bonds overseas as part of efforts to stabilise the won.”In a press release dated October 10, POSCO announced that it is planning a US$1 billion oversea bond offering some time in the fourth quarter this year. The press release explicitly stated that the proceeds from the bond offering would be used for future investment and operating funds. It did not say that the proceeds would be used to stabilize the won as the news article erroneously reported.Remarks attributed to Finance Minister Kang Man-Soo“Mr. Kang recently told a parliamentary session that ‘apart from exports, everything—including investment, consumption, employment and the current account balance—is showing a trend similar to that seen during the [Asian crisis].”The quote attributed to Minister Kang appears to refer to one of the many remarks he made at a National Assembly hearing on July 22, 2008, in response to questions on the outlook for the economy from National Assembly m
-
Oct 14, 2008
- Briefing for Analysts
- 1. Total Foreign DebtRecent debts have largely been incurred as a result of bridge-financing (based on anticipated future returns) such as currency forwards. This type of financing has different characteristics to that of liabilities incurred to finance current account deficits which were prevalent prior to the Asian Financial Crisis.As of the end of June 2008, it is estimated that $151.8 billion out of a total of $419.8 billion of foreign debt by BOK will be not be subject to any repayment burdens, and thus reduce the actual foreign debt amount to $268 billion. The exclusion of debts which are not subject to any repayment burdens will result in an actual net foreign asset amounting to $154.5 billion.The current external debt ratio as of the end of June 2008 stands at 86.1%. However, the figure falls to 54.4% when foreign bank branches are excluded, significantly reducing external debt risks.2. External Debt by Sector A. Government Sector The bulk of the government sector debt ($51.8 billion out of $63.1 billion) consists of KRW-denominated government bonds and currency stabilization bonds purchased by foreigners, for which the Korean government and the BOK has ample repayment capacity.The remainder consists of $3.3 billion in foreign currency-denominated FX equilibrium bonds, $3.4 billion in public loans, etc. (i.e. long-term external debts that pose little risk). B. Banking SectorForeign debts without any repayment burdens incurred from shipbuilders' currency hedging, etc. account for 44.6%, or approx. $93.8 billion, of the external banking sector debt. Foreign debts incurred by domestic branches of foreign banks from their headquarters abroad are very low-risk compared with those of Korean banks.* Foreign bank branches hold 43.1% of total external banking sector debts, and 57.7% of short-term debts.We are applying stringent criteria for FX liquidity to domestic banks than observed in other countries; hence, our current FX liquidity level remains stable.* Develope
-
Oct 13, 2008
- Domestic Banks’ Loan to Deposit Ratio
- The Financial Services Commission and the Financial Supervisory Service hereby issue a correction to the inference several newspaper articles have recently made from a cursory look at Korean banks’ loan/deposit ratios that Korean banks are funding local lending with foreign borrowing.The won-denominated loan/deposit ratio (including CDs) of domestic banks was 103.2% at end-September, 2008. Because of their deposit-like characteristics, CDs are included in determining the loan/deposit ratio, as is the convention in many countries. They are also classified as liabilities and thus subject to strict reserve requirements under the Bank of Korea Act. It should also be noted that over-the-counter bank teller sale of CDs account for approximately 80% of the total and that the average maturity of the CDs sold over-the- counter is five months. Furthermore, the loan/deposit ratio drops to 85.0% if bank-issued bonds are included in the ratio computation, meaning funding from local sources easily exceed local lending.Thus, the inference drawn from Korean banks’ loan/deposit ratios, ex-CDs and bank-issued bonds, that domestic banks are funding home lending with foreign borrowing is erroneous because local deposits and CDs have been, and continue to be, the primary sources of local funding for Korean banks.* Please refer to the attached PDF below.
-
Oct 10, 2008
- Key Issues on Korean Economy
- This document is prepared with the purpose to explain the following key issues on Korean economy.- External Debt- Foreign exchange reserve- Export- Current Account Balance- Korean Banks- FX Liquidity- Policy Responses 1. External Debt □ (Size) The ratio of external debt to GDP stands at 39% as of late 2007, which is lower than that of major developed economies1) and tolerable given the size of our economy.□ (Nature) Recent growth of external debt in Korea has risen as a counterpart to hedging activities undertaken by shipbuilders and overseas investors.ㅇ This is in stark contrast to massive foreign currency short-term borrowings induced for excessive investment by Korean Chaebols that led to the 1997 financial crisis.ㅇ As of June 2008, $152 billion out of $420 billion external debt are free of repayment burden, making the size of foreign debt with repayment burden reduced to $268 billion.ㅇ In addition, 22% of the total external debt (45% of short-term external debt) belongs to local branches of foreign banks, which makes it unfitting to be regarded as net external debt.ㅇ The IMF expressed that today's foreign debt increase in Korea not as risky as in the past. (08. 6.24, IMF Annual Consultation)1) the ratio of external debt to GDP as end of 2006 : UK(394%), Germany(144%), US(85%), Japan(35%) 2. Foreign exchange reserve□ (Size) Korea holds the 6th largest foreign exchange reserve in the world, which is deemed adequate.ㅇ The size is well beyond the IMF guideline, which is a global reference for the adequate size of FX reserve.2)ㅇ The IMF(Sep.4) and Fitch(July.16), a global credit rating agency, affirmed that Korea's reserve was sufficient.□ (Composition) Korea's reserve is composed of assets with low risk such as deposits, sovereign bonds, federal agency securities and supernational bonds.ㅇ As of September 2008, the total of $240 billion reserve can be cashed in immediately.2) IMF guideline for adequate FX reserve is a total of 3-month current pa
-
Oct 09, 2008
-
Oct 09, 2008
- News Briefing for Foreign Correspondents
- Soundness of Domestic Banks- Korea’s banking sector is sound in terms of asset strength, capital adequacy, profitability, and other soundness measures. Domestic banks’ ROA and ROE ratios, at 0.88% and 12.53%, respectively, are in line with or better than many banks in the developed countries.- Domestic banks’ average delinquency rate has risen slightly from 0.70% at end- 2007 to 0.87% at end-September, 2008. The average coverage ratio (a measure of reserves against potential loan losses) of 197.1% and BIS capital ratio of 11.36% strongly suggest that domestic banks will be able to easily absorb loan losses.- The Korean won-based liquidity ratio was 107.7% at end-August, while foreign currency-based liquidity ratio was 100.5% at end-September, both higher than the recommended level of 100% and 85%, respectively.- The loan/deposit ratio (including CDs) stood at 103.2% at end-September, slightly lower than 105.4% at end-July. Because of their deposit-like characteristics, CDs are often included in determining the loan/deposit ratio (e.g., the U.S.). The over- the-counter sale of CDs accounts for approximately 80% of the total.- It has been reported that Korean banks are borrowing in dollars and lending in won. This is incorrect because local banks are mostly financing won-denominated loans with deposits, CDs, and won-denominated bond issues.- As of end-June, 2008, foreign currency assets came to US$227.7 billion, which closely matched US$236.2 billion in foreign currency liabilities.Household Mortgages- Bank household mortgage loans outstanding totaled KRW231.8 trillion at end- September.- In 2008, bank mortgage lending rose by roughly KRW1.4 trillion a month.- Mortgage loans are sound, particularly when the low loan-to-value ratio (47.0%) and delinquency rate (0.44%) and the high coverage ratio (311.7%) are taken into account.SME Lending- The growth of bank lending to small- and medium-sized enterprises (SMEs) has slowed somewhat since August. SME loans outstand
-
Jan 09, 2008
-
Mar 09, 2007
