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Chinese property developer Evergrande faces US$ 300 bil. debt: potential impact on Korea's stock market Updated: 2021-09-23 19:46:16 KST

The Chinese real estate developer Evergrande is on the brink of defaulting on its debts, worth some 300 billion dollars, causing concern in some quarters about a collapse like that of Lehman Brothers in 2008.
Though Evergrande calmed fears of an imminent default as it said Wednesday that it would make a payment on a domestic bond worth about 35 million U.S dollars that was due on Thursday, the company faces repayment deadlines for staggering amounts of money coming up over the next few years.
But experts say it is unlikely that Evergrande will spark a global financial crisis in the same way the collapse of U.S. bank Lehman Brothers did in 2008, and it also won't have a major impact on Korea's stock market since most of Evergrande's debt is in Yuan meaning the issue is highly likely to remain in the domestic market.
Experts point out the main concern is that the Korean economy is highly dependent on China when it comes to exports, and the world's second largest economy could be hit hard if its giant real estate developer goes bankrupt since it owes money to banks, retail investors and suppliers.
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