[GLOBAL ECONOMIC TIMES]  According to the Ministry of Land, Infrastructure and Transport on the 29th, HUG suddenly halted procedures to issue bonds (new types of capital securities) worth up to 700 billion won. The day before, HUG submitted a securities report to the financial authorities and planned to forecast demand for institutional investors that day. However, the financial authorities expressed their opinion that “additional consultation with relevant ministries is necessary,” and the bond issuance work was halted accordingly.

HUG is currently investigating the reason for the suspension of the procedure.

HUG's losses are increasing due to continued guarantee incidents due to lease fraud, etc., and the subrogation amount incurred in the process of returning lease money to tenants instead of landlords is expected to exceed 3 trillion won. As a deficit is expected, it is trying to increase capital through hybrid capital securities. did it In particular, since the HUG's guarantee limit is linked to the capital, if the capital decreases due to accumulated losses, subscription to the lease guarantee may be discontinued, so capital expansion is necessary. There are also concerns that if the HUG capital expansion does not proceed as planned, the damage will fall on the working class who need to sign up for a rental deposit guarantee.

An official from the Ministry of Land, Infrastructure and Transport said, “This is a request to supplement in more detail the need to issue new types of capital securities,” and added, “After supplementation, we will pursue bond issuance in consultation with financial authorities.”

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