Risky PF loans drop sharply in 2025: watchdog | Yonhap News Agency

## Summary
OK SEOUL, April 5 (Yonhap) -- Outstanding loans extended to risky real estate development projects dropped sharply last year via sell-offs or recapitalization, the financial watchdog said Sunday. According to the Financial Supervisory Service (FSS), 14.7 trillion won (US$9.74 billion) in loans extended to real estate projects were classified as risky at the end of last year. The end-December figure accounted for 8.4 percent of total exposure by financial institutions to real estate development at 174.3 trillion won, which also marks a drop from 11.5 percent at the end of March last year and 190.8 trillion won, respectively. PF loans have been one of the sticky issues in the financial market as a rise in soured loans, which started in late 2023, was feared to hurt financial institutions and the overall financial stability in the market. sam@yna.co.kr (END) Articles with issue keywords Most Liked Oscar-winning 'KPop Demon Hunters' directors promise 'bigger,' more 'eventful' sequel Paik Kun-woo, at 80, says 'Music chose me' (LEAD) BTS scores 7th No. 1 album on Billboard 200 with 'Arirang' BTS to drop 'Come Over,' exclusive new track on 'Arirang' LP (URGENT) BTS earns 7th No. 1 song on the Billboard singles chart with 'Swim' Most Saved Oscar-winning 'KPop Demon Hunters' directors promise 'bigger,' more 'eventful' sequel Paik Kun-woo, at 80, says 'Music chose me' (LEAD) Trump calls on countries to 'go get your own oil' from Strait of Hormuz, or buy it from U.S. (3rd LD) Lee says S.

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OK
SEOUL, April 5 (Yonhap) -- Outstanding loans extended to risky real estate development projects dropped sharply last year via sell-offs or recapitalization, the financial watchdog said Sunday.
According to the Financial Supervisory Service (FSS), 14.7 trillion won (US$9.74 billion) in loans extended to real estate projects were classified as risky at the end of last year.
The reading marks a drop from 18.2 trillion won at the end of September, 20.8 trillion won at the end of June, and 21.9 trillion won as of end-March.
The end-December figure accounted for 8.4 percent of total exposure by financial institutions to real estate development at 174.3 trillion won, which also marks a drop from 11.5 percent at the end of March last year and 190.8 trillion won, respectively.
The remaining risky PF loans will be restructured as well, the watchdog said.
PF loans have been one of the sticky issues in the financial market as a rise in soured loans, which started in late 2023, was feared to hurt financial institutions and the overall financial stability in the market.
sam@yna.co.kr
(END)
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Risky PF loans drop sharply in 2025: watchdog

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## Expert Analysis

### Merits
N/A

### Areas for Consideration
- PF loans have been one of the sticky issues in the financial market as a rise in soured loans, which started in late 2023, was feared to hurt financial institutions and the overall financial stability in the market. sam@yna.co.kr (END) Articles with issue keywords Most Liked Oscar-winning 'KPop Demon Hunters' directors promise 'bigger,' more 'eventful' sequel Paik Kun-woo, at 80, says 'Music chose me' (LEAD) BTS scores 7th No. 1 album on Billboard 200 with 'Arirang' BTS to drop 'Come Over,' exclusive new track on 'Arirang' LP (URGENT) BTS earns 7th No. 1 song on the Billboard singles chart with 'Swim' Most Saved Oscar-winning 'KPop Demon Hunters' directors promise 'bigger,' more 'eventful' sequel Paik Kun-woo, at 80, says 'Music chose me' (LEAD) Trump calls on countries to 'go get your own oil' from Strait of Hormuz, or buy it from U.S. (3rd LD) Lee says S.

### Implications
- The remaining risky PF loans will be restructured as well, the watchdog said.
- PF loans have been one of the sticky issues in the financial market as a rise in soured loans, which started in late 2023, was feared to hurt financial institutions and the overall financial stability in the market. sam@yna.co.kr (END) Articles with issue keywords Most Liked Oscar-winning 'KPop Demon Hunters' directors promise 'bigger,' more 'eventful' sequel Paik Kun-woo, at 80, says 'Music chose me' (LEAD) BTS scores 7th No. 1 album on Billboard 200 with 'Arirang' BTS to drop 'Come Over,' exclusive new track on 'Arirang' LP (URGENT) BTS earns 7th No. 1 song on the Billboard singles chart with 'Swim' Most Saved Oscar-winning 'KPop Demon Hunters' directors promise 'bigger,' more 'eventful' sequel Paik Kun-woo, at 80, says 'Music chose me' (LEAD) Trump calls on countries to 'go get your own oil' from Strait of Hormuz, or buy it from U.S. (3rd LD) Lee says S.

### Expert Commentary
This article covers loans, won, end topics. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 428.