South Korea’s economy is anticipated to show signs of growth this year, primarily due to an upturn in exports following a prolonged period of poor performance. Despite this positive outlook, recent data indicates a deepening slump in domestic demand, with particular concerns surrounding the construction sector. The ongoing issues in the construction industry are especially troubling as project-financing loans continue to pose a significant risk to the economy.

The surge in project-financing loans, which mirrored the flourishing property market, notably during the last years of the previous administration, has now started to show signs of deterioration.