Savings Banks, PF Loans Subject to Auction Every 3 Months After 6 Months of Delinquency

Measures to Revitalize Gyeong and Gongmae

The Korea Federation of Savings Banks announced on the 29th that it will implement measures to revitalize auctions and public sales to efficiently resolve non-performing real estate project financing (PF) loans, incorporating these measures into the standard regulations starting from the 1st of next month.

Key points of the auction and public sale revitalization plan include conducting periodic auctions and public sales every three months for PF loans overdue by more than six months. Additionally, the plan involves comprehensively considering the actual collateral value reflecting the decline in the likelihood of debt recovery, the possibility of sale, and the minimum bid price from the previous public sale round to determine an appropriate auction price.

A representative from the savings banks stated, "The savings bank industry will continue to promptly resolve non-performing assets through auctions, public sales, proprietary funds, and write-offs. We will also strengthen efforts to enhance soundness so that ordinary citizens and small and medium-sized merchants can use savings banks with confidence."

[Image source=Yonhap News]