[Concall] Shinhan Financial “Own Real Estate PF Restructuring Scale 440 Billion Won”

Shinhan Financial Group stated on the 25th during the Q3 earnings conference call that “Shinhan Financial Group has conducted a feasibility assessment on all project financing (PF) assets and is undergoing a restructuring process for ‘cautionary’ projects.” They added, “In Q2, we established a restructuring or disposal plan worth approximately 510 billion KRW and have already disposed of some assets.” Furthermore, they said, “In Q3, we are conducting an investigation of all projects and plan to submit a management plan to the regulatory authorities soon.”

Cheon Sang-young, Vice President (CFO) of Shinhan Financial Group, commented on the real estate PF market situation, saying, “Due to the trend of interest rate cuts, there is market optimism that the PF market will recover,” but added, “We will expedite the PF normalization plan under government leadership by early next year.” He further explained, “Regarding loan loss provisions, Shinhan Financial has set aside more than 30% for real estate PF, so short-term significant losses from PF are expected to be limited.”

Shinhan Financial Group