[Economy PICK] 'Red Swamp' HUG Capital Expansion Braking...What should I do with the lease on a deposit basis?

[Anchor]
Third topic, 'deficit swamp' HUG capital expansion braking...It's a lease guarantee.

Housing and Urban Guarantee Corporation, HUG is suffering from a deficit swamp?

[Reporter]
HUG is a public corporation under the Ministry of Land, Infrastructure and Transport that provides guarantees when receiving a lease loan.

Subrogation payments, which are deposits HUG gave back to tenants instead of landlords, have recently increased.

In particular, it far exceeded 3 trillion won last year when the damage of jeonse fraud spread, and this year, it has already exceeded 3 trillion won as of the end of September.

The problem is that HUG is also increasing its financial burden as it fails to properly return the lease on a deposit basis from the landlord.

For this reason, the government decided to expand capital by issuing bonds worth 500 billion won, but it was suspended due to the suspension of the financial authorities.

[Anchor]
What's the point of putting the brakes on?

[Reporter]
This is because the financial authorities conveyed their opinion that additional consultations with related ministries are needed.

Analysts said they were concerned that HUG's capital expansion could signal the expansion of jeonse loans to the market.

The financial authorities explained, saying it was an unrelated measure,

Listen for yourself.

[Kim Byung-hwan, Chairman of the Financial Services Commission: If a proposal is made after consulting with each other about sufficient information in the process of submitting a securities report, we will discuss the schedule and details so that HUG's capital expansion and soundness will not be disrupted.]

This means that HUG's issuance of new capital securities is the first time, so it is necessary to consult with financial authorities in the process of submitting a securities report as it is conducted through a public offering method.

Concerns are growing that if HUG does not increase its capital by the end of this year, it will have a major setback in issuing new guarantees starting next year.