The Financial Supervisory Service has begun to examine the potential insolvency of private equity funds investing in solar power generation projects.
According to the financial industry on the 23rd, the Financial Supervisory Service (FSS) began to note the current status of private equity investment in the solar power business as concerns about the insolvency associated with the solar power generation business grew.
According to data received by the Financial Supervision Service from Yoon Chang-hyeon, People’s Power Bureau, the number of solar private equity funds owned by the top 10 domestic asset managers totaled 50, and the amount established was 3.13 trillion won.
In addition, professional private equity managers have launched various funds to invest in domestic and foreign solar power generation businesses.
First, the Financial Supervisory Service (FSS) intends to look at the investment size and current status of funds related to solar power and risk management with the management industry.
An official from the Financial Supervisory Service said, “We intend to investigate issues such as asset soundness and investor protection of solar funds.”
However, it is reported that there are limitations to efficient investigation as there are many specialist private placement managers and many small scale managers.
The Government Policy Coordination Office recently released the results of an investigation that found that 261.6 billion won was unfairly borrowed and paid out of the Electric Power Industry Infrastructure Fund project promoted by the Moon Jae-in government to revive production solar power.
In this regard, the Financial Supervisory Service (FSS) has started checking whether the solar power loan is insolvent against the bank.
After a meeting with related organizations of listed companies on the 21st, Lee Bok-hyeon, head of the Financial Supervisory Service, told reporters, “In the financial sector, loans related to solar and fund management are more diverse than the I thought, so I want to see what kind of funds are out there and what their structure is,” he said
/happy news
