S. Korea to ban SPCs and real estate firms from brokerages' loans
SEOUL, Jan. 7 (Yonhap) -- South Korea will push to exclude special purpose companies (SPCs) and real estate firms from the scope of small and medium-sized companies eligible for loans from brokerages, the chief financial regulator said Tuesday.
Loans from securities firms were meant to be funneled to venture firms and small and medium-sized companies, but some of the loans ended up in property development projects through SPCs that are usually considered smaller firms, according to the Financial Services Commission (FSC).
Securities firms extended more than 5 trillion won (US$4.28 billion) to special purpose companies, 40 percent of which was funneled to real estate sector, FSC Chairman Eun Sung-soo said, without elaborating on a time frame.
"It is never desirable for investment banking divisions of securities companies to concentrate on real estate," Eun said in a meeting with top executives of securities firms.
He called for efforts to ensure securities firms can extend loans to innovative companies.
Last month, Eun asked financial institutions to extend more capital to small and medium-sized companies with new technologies and growth potential.
South Korean financial institutions have excessively extended home-backed loans and other loans to households.
entropy@yna.co.kr
(END)
-
BTS member Jimin's 'hanbok' suit up for auction
-
BTS enters Billboard Hot 100 with new Japanese single
-
BTS to stream concerts in weekend Bang Bang Con event
-
(LEAD) Seoul mayor pushes for introduction of self-testing kits, extending hours for small businesses
-
BLACKPINK amasses 60 mln subscribers on YouTube: agency
-
Number of peak concurrent viewers on BTS online event surpasses 2.7 mln: agency
-
(LEAD) New virus cases in 600s for 4th day as sporadic infections continue
-
S. Korea to start vaccinations of care workers, airline crews
-
Vaccine supply glitch threatening to take inoculation scheme off track
-
(LEAD) Kerry: Japan's coordination with IAEA is 'key' to ensuring safety in Fukushima water release