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Over 90% of risky PF loans restructured as of end-September: Watchdog

Published: 23 Dec. 2025, 09:22 Updated: 23 Dec. 2025, 14:11

The Financial Supervisory Service building in Yeouido, western Seoul, is pictured on May 10, 2020. [YONHAP]

Over 90 percent of loans extended to risky real estate development projects had been restructured through September via sell-offs or recapitalization, the financial watchdog said Tuesday.

According to the Financial Supervisory Service, 16.5 trillion won ($11.15 billion) out of 18.2 trillion won extended in loans to risky real estate project financing (PF) had been restructured as of end-September.

Financial institutions' exposure to real estate development stood at 177.9 trillion won at the end of September, down 8.7 trillion won from three months earlier.

The remaining risky PF loans will be restructured without any problem, the watchdog said.

PF loans have been one of the sticky issues in the financial market as a rise in soured loans, which started in late 2023, was feared to hurt financial institutions and the overall financial stability in the market.

Yonhap