Risky real estate loans in South Korea decline sharply amid restructuring

South Korea has seen a significant reduction in its high-risk real estate project loans, according to financial authorities. By the end of 2025, these risky project financing (PF) loans totaled 14.7 trillion won (approximately $9.74 billion), dropping from 18.2 trillion won just three months earlier and 21.9 trillion won at the start of the year. This decline reflects aggressive sell-offs and recapitalization efforts aimed at defusing a growing threat to the financial system. The risky loans now