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Jipyong Established the “Real Estate PF Normalization Center”

2023.10.03

The financial crisis triggered by the interest rate hike in the United States is spreading into a crisis in real estate development projects utilizing project financing (PF). 
 
Jipyong LLC established the Real Estate PF Normalization Center to normalize the PF project-related crisis precipitated by the 2008 financial crisis, and diagnosed and analyzed PF entities to provide solutions tailored to the characteristics of each business entity, and achieved normalization. 
 
Based on its experience in normalizing PF projects in 2008 and its experience in advising on financial matters and litigation, as well as construction and real estate litigation since then, Jipyong aims to contribute to the normalization of PF projects in crisis by bolstering the manpower and overhauling the Real Estate PF Normalization Center. 
 
The characteristics of the PF entities in 2022 are both similar and different from the situation in the 2008 financial crisis. 
 
The main difference is that the lenders holding PF loan receivables are more likely to be savings banks, credit unions, unit cooperatives, and capital firms in 2022, as opposed to commercial banks in 2008. As the nature of the lenders changes, the means to overcome the crisis should also change according to the characteristics of the financial institution. There is, however, a similarity between the situation in 2008 and that in 2022: construction companies that underwent credit enhancement are facing restructuring pressures such as workout and rehabilitation due to the financial crunch and exposure to contingent liabilities resulting from credit enhancement. 
 
Jipyong, which has grown together with its customers based on their trust, wants to repay their trust by resolving their difficulties as swiftly and precisely as possible during the upcoming difficult times. In time of crisis, we will strive to be remembered as an organization that solves customers' difficulties together.

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