▲ Financial Services Commission Chairman Lee Eok-yeon
Financial Services Commission Chairman Lee Eok-yeon visited a project financing (PF) project site in the capital area today and urged the financial sector to actively provide PF guarantees and fund supplies.
FSC Chairman Lee visited the urban development project site in Pungmu Station Area in Gimpo, Gyeonggi Province, to inspect the PF financing status.
The B4, B5, and C5 blocks visited by the FSC are large-scale project sites comprising approximately 2,700 households, currently undergoing full-scale housing construction and sales procedures.
Although the project schedule was adjusted earlier due to the real estate market slowdown and uncertainty in sales, Hoban Construction and Hoban Industry, which are in charge of development and construction, stably secured about 600 billion won in funds through the Korea Housing & Urban Guarantee Corporation's (HF) PF project developer guarantee.
As project costs recently increased due to rising construction costs and interest rates, they utilized the "Construction Cost Plus PF Guarantee," which allows guarantee supplies even after the commencement of construction, to secure additional project funds.
Following the site visit, Chairman Lee held a meeting with Hoban Construction, HF, Kookmin Bank, the Korea Federation of Banks, Gimpo Urban Management Corporation, and the Construction Association of Korea to listen to on-site difficulties and guide system improvements.
Following the announcement of the August 13 measures, HF expanded its guarantee supply target from 6 trillion won to 9 trillion won.
Kookmin Bank also handled about 4 trillion won in PF loans this year and plans to significantly expand its internal limits related to PF.
Chairman Lee evaluated that "the Pungmu Station Area urban development project is a success story showing the process in which PF financial support leads to actual housing supply."
He then emphasized that "for prompt housing supply, the efforts and achievements of all participating entities must be organically combined, including the developer's will, the contractor's smooth progress of construction, the private financial sector's fund supply, and HF's PF guarantees."
He added, "The government will spare no support by preparing necessary financial support plans while resolving difficulties."
The government plans to closely manage 325 PF project sites expected to commence construction or be completed next year.
Chairman Lee urged, "On-site officials should actively communicate on-site difficulties and suggestions by utilizing the PF and Builder Financial Difficulty Resolution Center."
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