Vice Chairman Kim Soyoung of the Financial Services Commission attended a memorandum of understanding (MOU) signing event held among five banks and five insurance companies on June 20. The agreement signed today is for creating a syndicated loan of up to KRW5 trillion, which is part of the measures to seek a soft-landing in the real estate project finance market unveiled previously. The syndicated loan set up by major banks and insurers in the amount of KRW1 trillion at first, with a potential for gradual expansion thereafter, will supply loans to development projects that are deemed to be viable without any risk of legal complications or conflicts between lenders. In his remarks, Vice Chairman Kim emphasized the significance of the commitment shown by private sector financial companies as this syndicated loan is being set up exclusively with funds contributed by commercial banks and insurance companies without any backstop from the public sector. In this regard, Vice Chairman Kim said that the support made available by syndicated loan is expected to provide a pump-priming role for the normalization of the real estate project finance market.