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Photo = Financial Supervisory Service |
[Alpha Biz= Reporter Kim Minyoung] The Financial Supervisory Service (FSS) is accelerating the resolution of real estate project financing (PF) projects. Starting next month, all restructuring of real estate PF projects must be completed within six months.
According to financial authorities on the 24th, the FSS has instructed all financial institutions to submit restructuring or voluntary sale plans for projects rated as "caution" and write-off or auction sale plans for projects rated as "troubled" by the recent business evaluation. The deadline for these submissions is September 9th.
Under the guidelines, the expected completion date for restructuring and resolution is within six months from the submission of the plan, targeting the resolution of troubled projects by February next year.
However, projects entering the initial auction process will be completed around April next year. The FSS explained that this timeline accounts for administrative procedures like appraisal, which can take up to two months from plan submission to the start of the initial auction.
The auction process will last up to one month, and if it fails, another auction must be conducted within one month. The final completion date must be within six months of the start of the auction process. During re-auctions, the price cannot be the same as the failed auction price; it must be about 10% lower than the previous auction’s final price.
The FSS plans to conduct on-site inspections and interviews with management from the 19th of next month if there are deficiencies found in the submitted plans.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
