On Jul. 1, SK FSC, SK FSS issued remaining no-action statements.
SK FSC, SK FSS issued no-action statements for the second round of temporary financial de-regulation re the real estate project finance (PF) soft landing policy.
Follows SK FSC May 2024 issued no-action statements for PF loan, see #214052.
Also follows SK FSC, FSS Jun. 2024 2nd meeting soft landing measures, see #214750.
No-Action Statements
Where a financial company supplies new funds to a restructured business that meets all the special requirements for soundness classification by Dec. 31, 2024, the classification can be upgraded by separating it from existing loans in the business.
For PF business sites restructured with the supply of new funds or equity-to-equity conversion, feasibility evaluation may take into account such revamped fund structure.
For PF loan exposures newly handled by insurance firms via syndicated loans until Dec. 31, 2024, credit risk coefficient is reduced when calculating the solvency margin ratio; the exposures are excluded from the measurement of real estate concentration risk.
Where insurance firms sell repurchase agreement (RP) for raising funds for a syndicated loan by Dec. 31, 2024, it may be recognized as meeting borrowing requirements for maintaining appropriate liquidity as per the Insurance business act.
Effectiveness
The four no-action statements will be effective until Dec. 31, 2024.
Plan
SK FSC, SK FSS will identify additional necessary incentives in close communication with the industry, implement required deregulation measures in a timely manner.
