Shadow Banking Stress in South Korea Sends Warning to Global Investors

Korea shadow-bank real estate debt rose to record $671 billion
Regulator may conduct on-site inspections of savings banks

WATCH: South Korea is emerging as weak link in the world of shadow banking, with its real estate exposure surging. Finbarr Flynn reports.Source: Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Finbarr Flynn

April 22, 2024 at 9:00 PM UTC

This article is for subscribers only.

South Korea is emerging as a closely watched weak link in the $63 trillion world of shadow banking.

Real estate exposure has been showing cracks at home and abroad after interest rates rose, prompting financial firms including T. Rowe Price Group Inc. and Nomura Holdings Inc. to express concern about stress in shadow loans to the sector.