FSS Holds Financial Support and PF Sale Briefing for Housing Supply

The Financial Supervisory Service (FSS) has arranged a session to provide step-by-step explanations of financial support programs following the August 13 measures to vitalize housing supply.

The FSS held a briefing session on housing supply financial support programs and project financing (PF) business site sales at its main office in Yeouido, Seoul, this afternoon (September 15).

Consisting of five sessions, the briefing detailed the support programs for each stage of housing development PF project implementation.

For financial support required during the initial bridge stage, Koramco Asset Trust will provide a total of 610 billion won through a PF development anchor REIT at a lower interest rate than standard bridge loans.

PF guarantees required during the transition stage from bridge loans to main PF loans will be supported by the Korea Housing & Urban Guarantee Corporation (HUG) through expanded guarantee limits and dedicated PF guarantee products for small and medium-sized builders.

The banking and insurance sectors will expand the limit of the PF syndicate loan—which can be applied for in case of temporary liquidity bottlenecks across all project stages—from 1 trillion won to 5 trillion won.

Korea Land & Housing Corporation (LH) will support land acquisition and construction costs across all project stages and operate a public purchase-lease program to mitigate unsold housing risks.

To encourage the resumption of delayed or suspended residential business sites in the capital area, a sale briefing attended by financial sector officials was also held on the same day.

The FSS stated, "We plan to provide all-out support to ensure that necessary housing is supplied promptly through close management of residential PF business sites and swift resolution of financial difficulties."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.