On June 15, financial sources reported that Samsung Card temporarily halted all corporate card transactions for Central Group.
At its subsidiary JTBC, both Samsung Card and Hyundai Card corporate card usage have been stopped. Other corporate cards, including those from Hana and Shinhan, are also expected to be suspended in the near future.
The suspension of corporate card usage is seen as a risk management measure by financial institutions in response to Central Group's bankruptcy filing. Previously, on June 12, JTBC declared a default after failing to repay 20.6 billion won in maturing asset-backed loans. Following this, Central Group subsidiaries Contentree Central and Megabox Central filed for bankruptcy proceedings in court.
When bankruptcy proceedings commence, financial institutions often adjust their credit offerings conservatively to manage the risk of debt recovery. Corporate cards, which provide credit to businesses up to a certain limit, may face usage suspensions or limit reductions for companies undergoing bankruptcy proceedings.
A representative from the card industry stated, "It is common for financial institutions to operate credit transactions conservatively to protect their claims after a bankruptcy filing. The restrictions on corporate card usage are part of standard risk management practices."
* This article has been translated by AI.
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