New finance minister vows thorough real estate PF risk management

Written by Oh Seok-min

SEOUL, Jan. 2 (Yonhap) – New Finance Minister Choi Sang-mok vowed on Tuesday to work to rebuild people’s lives and thoroughly manage risks related to real estate project finance (PF) and other potential economic problems. Ta.

According to the Ministry of Economy and Finance, Choi delivered this message at an inauguration ceremony held online, four days after taking office on Friday.

“Multiple challenges await us this year. We must do our best to stabilize inflation and restore the people’s economic life by spreading the effects of the export-led economic recovery to domestic demand,” Choi said.

“There is an urgent need to thoroughly manage potential risks such as PF loans and household debt,” he said, calling for innovation and social mobility to create quality jobs and realize a “dynamic economy.” He emphasized efforts to increase the

The new minister also called for organizational innovation within the ministry to take the lead in tackling complex social issues through policy development and fiscal management tools.

South Korea’s economy is expected to recover this year on the back of increased exports, but the government and experts say domestic demand remains weak against a backdrop of still high inflation and interest rates, and risks related to PF loans amid a slump in the real estate market. , and pointed to a downturn in the real estate market. External uncertainty poses a major headwind for the economy.

Mid-sized construction company Taeyeon Construction last week applied for a debt restructuring program after suffering from a lack of liquidity due to the PF loan.

According to the ministry, the Ministry of Finance will announce economic growth forecasts for 2024 and key policy goals and measures for this year.