input2023.02.26 17:58
correction2023.02.27 00:52
faceA14
Interim payment loan insolvency due to suspension of construction
The court’s battle for provision
Local Saemaul Geumgoes, who had borrowed interim payments, have been concerned about their bankruptcy as a medium-sized construction company, which has been accused of fraud and theft, has stopped the construction of officetels for several years. It is known that the amount of joint loans that went out to two business sites in Daegu and Yangsan, Gyeongsangnam-do alone amounted to 280 billion won. The Saemaul Credit Cooperative Federation belatedly asked the coffers to set up an allowance for bad debts, but the coffers instead said, “I can’t do it,” and the debate is growing as a result of a legal battle. There is also a line of depositors who want to withdraw money from the Saemaul Geumgo because of the unprecedented dispute.
The business site in question is the ‘Dine Royal Palace’ office, which began construction in 2016 by Dine Construction in Jung-gu, Daegu and Mulgeum-eup, Yangsan, respectively. All 1,328 homes were initially expected to move into in 2019, but construction was halted for almost four years due to the construction company’s suspicions of fraudulent sales and financial difficulties. There are said to be six other similar businesses across the country.
Twelve coffers in the Daegu region, including Shincheon, Daehyeon, Keungogae, and Seongil, which participated as major stockholders, have also been taking group loans granted to subcultures since 2016. After five extensions of maturity, at the beginning’ this month, it was decided to extend the loan for an additional six months on the 22nd, after trying to notify the end of the loan. For the interim payment loan, which was initially interest-free, subcontractors pay interest as the developer stops paying interest due to financial difficulties. Not a few people have become credit delinquents because they cannot pay interest.
In the end, the Saemaul Credit Cooperative Federation classified the loan as non-performing loans with little possibility of recovering the loan and demanded that at least 55% of the balance be set aside as provisions. However, these coffers applied for a temporary injunction to stop the validity, saying, “It is not late because we are receiving interest.” The results are expected to come out early next month. An official in the banking sector said, “It is unreasonable not to build provisions for business loans that are past due by almost four years and have no promise of completion.”
As the dispute continued, depositors’ anxiety increased. There is a procession of people trying to cancel deposits in Saemaul Geumgo branches that are not major stock holders. The Central Association said, “There is no problem with the strength of the coffers as much as individuals worry about it.” However, depositors said, “The fact that there is noise over the provision is in itself unsettling.”
Correspondent Binnansae binthere@hankyung.com
