Meriz Financial Group noted that it should have no issues recovering the money and interest loaned to Homeplus, which is undergoing corporate rehabilitation.
Oh Jong-won, chief risk officer (CRO) of Meriz Financial Group, said during a conference call after the first quarter earnings announcement on the 14th, "Currently, 4.8 trillion won of real estate collateral is secured against 1.2 trillion won of bonds, so recovery can be made stably regardless of Homeplus's rehabilitation plan."
Meriz Financial Group acted as the sole arranger for the financing of the Homeplus acquisition last May, providing a loan of 1.2 trillion won. MERITZ Securities took on 655.12 billion won, while Meriz Capital and Meriz Fire & Marine Insurance assumed 280.77 billion won each.
Meriz Financial Group incurs approximately 24 billion won in quarterly interest on the Homeplus loan, having received interest only until the end of February. Oh added, "Moving forward, updates regarding interest will be made according to the progress of the rehabilitation plan."
Meriz Financial Group accumulated provisions and reserves of 17.8 billion won and 225.5 billion won, respectively, related to Homeplus. Oh said, "I believe the likelihood of making significant additional provisions in the future is low."