Savings banks have investments and subordinated loans totaling 50 billion won tied to real estate investment trusts (REITs) backed by Homeplus stores as underlying assets, it has been learned. The market assesses that the recovery of the equity investments is unlikely, while the subordinated loans also carry a high probability of losses.
According to the financial industry Wednesday, investments and subordinated loans to Homeplus by Daishin, KB, and Hana Savings Bank, among others, totaled 47.6 billion won. Subordinated mortgage loans accounted for 37.6 billion won, and common stock investments for 10 billion won.
The largest investment by savings banks is in the Homeplus Ulsan Dong-gu branch. Daishin Savings Bank extended a subordinated mortgage loan of 10 billion won to "Daehan No. 21 REIT." KB (5 billion won), Yegaram (4.7 billion won), and Hana (3 billion won) also participated in subordinated positions. Daol and OSB each contributed 3.5 billion won in common stock, and JT contributed 3 billion won.
For "KB Sadang Retail REIT," which includes the Homeplus Sadang branch, Daishin and Koryo Savings Bank each executed third-priority mortgage loans of 3 billion won. For "JR No. 24 Corporate Restructuring REIT," which holds the Homeplus Gangseo branch and the headquarters building, Kumhwa Savings Bank (1.8 billion won), Woori Financial Savings Bank (2.7 billion won), and JT Chinae Savings Bank (4.4 billion won) participated in subordinated mortgage loans.
To date, loan interest has been paid normally, according to sources. In contrast, dividends to equity investors have been suspended due to unpaid or delayed store rents.
Savings banks are reviewing their response measures. "If Homeplus's bankruptcy is confirmed, we plan to reclassify the loans as substandard or below and set aside additional provisions," a savings bank official said. "Since we hold collateral rights, bankruptcy will not immediately lead to a total loss of the loan amount."
