Sharply rising interest rates and a cooling property market have raised concerns about the potential impact on Asia’s fourth-largest economy.
Woori Bank, Hana Bank, Shinhan Bank, KB Kookmin Bank and NongHyup Bank had been asked to make financing available to MG Community Credit, although the actual amount extended to the credit union would depend on deposit withdrawals, the sources said. Sunday’s statement, from officials at the Bank of Korea and the Ministry of Finance as well as the Financial Services Commission, added that withdrawals at MG Community had slowed and new deposits had been coming in since last Thursday.An investor note from Citi last week played down the risks from the incident but warned of negative effects on economic growth from the indebted real estate sector.