(Seoul=Yonhap Infomax) Correspondent Nam Seung-pyo = Minister of Land, Infrastructure and Transport Won Hee-ryong diagnosed that the financial crisis in the construction industry following the Legoland incident in Gangwon-do was almost resolved.
He said it was too early to talk regarding a recovery in demand, although there was a bottom theory regarding the housing market.
Minister of Land, Infrastructure and Transport Won Hee-ryong held a meeting at the press room of the Ministry of Land, Infrastructure and Transport in Sejong City on the 28th and said, “Financial policies from Legoland and Heungkuk Life Insurance had a clue that parts intertwined with real estate in the financial sector might spread to a tense or shocking aspect.” “I think the financial crisis caused by that is almost resolved,” he said.
Minister Won evaluated that the prompt response with the financial authorities, including the project finance (PF) guarantee of 5 trillion won proposed by the Ministry of Land, Infrastructure and Transport, provided a safety valve to the market and produced results.
Regarding the current construction industry, he suggested that some degree of restructuring should be endured.
Minister Won said, “If some local construction companies are in arrears on some loans, or if this is a business place that does not come under the guarantee we provide, even if it is not in a real estate slump, a good business will make a fortune. If you take it with you, isn’t it your business responsibility?”
He added, “In the end, there are much more self-sufficient aspects,” adding, “That’s why I’m watching this situation, and I’ve already laid enough safety valves for the whole.”
Regarding the housing market, Minister Won said, “Whether the demand side has bottomed out or recovered, it is still too early to do so if we take risks.”
He explained, “A short-term forecast is such a situation that no one can confidently make.”
He continued, “We continue to closely monitor consumer policies and are working with a humble attitude so as not to make mistakes in fine-tuning.”
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This article was serviced at 18:30 on the Infomax financial information terminal.
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