Korea Says $44 Billion Lender to Property Sector Has Stabilized
- The credit union MGCCC has suffered a jump in delinquencies
- Its recent troubles are part of broader real estate debt risks
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The Korean regulator in charge of a federation of credit unions that’s grappled with rising delinquencies and withdrawals said there’s been stabilization, after the woes spooked broader markets earlier this month.
Deposit flows at MG Community Credit Cooperatives have definitely stabilized, a spokesperson for the Ministry of Interior & Safety, which oversees the federation, said when asked about the situation this week. MGCCC’s fate has captured the attention of investors in Korea, where it’s a key lender to the property sector at a time when defaults are spreading.