S.Korea ready to stabilise markets as Taeyoung restructures debt (updated)

Taeyoung Engineering & Construction

29/12/2023 24:58

(Adds comments and details in paragraphs 2-6)
       SEOUL, Dec 29 (Reuters) - South Korea's government will
work with the central bank to swiftly deploy market stabilising
measures if needed, the finance minister said on Friday, after
Taeyoung Engineering & Construction  009410.KS  said it was
restructuring debt.
    "If needed the Bank of Korea will prepare liquidity support
measures through open market operations," Choi Sang-mok said in
a meeting with the Bank of Korea and regulators in Seoul,
without elaborating. 
    Taeyoung E&C  009410.KS , a mid-sized South Korean builder
on Thursday said it planned to restructure its debt, which
amounts to 4.58 trillion won ($3.6 billion) including project
financing loans.
    That makes up less than 1% of assets held by local financial
institutions.
    "Local banks loss related to Taeyoung E&C won't be too big,"
Samsung Securities said in a report dated Thursday.
    "We expect swift restructuring in project financing market
and in doing that, shocks stemming from this won't last too long
as timely government support is likely to be on the way."



 (Reporting by Cynthia Kim; Additional reporting by Joyce Lee;
Editing by Jamie Freed and Stephen Coates)
 ((Cynthia.Kim@thomsonreuters.com; 822 3704 5655; Reuters
Messaging: cynthia.kim.thomsonreuters.com@reuters.net))