Kim Beom-suk, Acting Minister of Economy and Finance, said on the 23rd, "We will continue to discuss measures to accelerate the cleanup and restructuring for some business sites where the real estate project financing (PF) cleanup has been insufficient."
Acting Minister Kim noted this during a meeting called "macroeconomic and financial issues meeting" (also known as the F4 meeting) held that morning at the Korea Federation of Banks headquarters. The meeting was attended by Lee Chang-yong, Governor of the Bank of Korea, Kim Byeong-hwan, Chairman of the Financial Services Commission, and Lee Bok-hyun, head of the Financial Supervisory Service.
Participants evaluated that the ongoing cleanup and restructuring efforts in real estate PF have achieved meaningful results in inducing an orderly soft landing for real estate PF.
It was decided to continue discussing measures to accelerate the cleanup and restructuring for some business sites where the cleanup has been insufficient.
F4 participants reported that uncertainties in external factors such as tariff negotiations among major countries and the U.S. economic situation persist, and agreed to monitor the impacts of volatility in the government bonds markets of major countries like the U.S. and Japan on the financial and foreign exchange markets.
Recently, the yield on the U.S. 30-year government bonds has surpassed the "psychological resistance level" of 5%. The yield on Japanese 30-year government bonds hit a new record high, while yields on long-term government bonds in the U.K. and Germany are also on the rise.
This is due to the ongoing uncertainty stemming from U.S. tariff policies, while President Donald Trump is pushing a large-scale tax cut bill. Generally, as fiscal deficits widen, government bond issuance becomes unavoidable, and an increase in the supply of government bonds leads to a decline in bond prices (a rise in bond yields).
Acting Minister Kim stated, "We will closely examine the impacts on domestic financial and foreign exchange markets centered around the F4 meeting."