The Financial Supervisory Service and Korea Development Bank will set up dedicated centers to resolve financing difficulties for project financing (PF) business sites and construction companies and will install them next month.
On the 28th, the Financial Services Commission (FSC) and the Ministry of Land, Infrastructure and Transport (MOLIT) held a "regular finance and construction industry meeting kickoff" and discussed the implementation status of the Aug. 13 real estate finance measures. At this meeting, the FSC reviewed the progress of plans to strengthen financial support to promote the supply of dwellings included in the Aug. 13 package. Of the 20 tasks in total, it plans to promptly carry out 11 that can be implemented this month. It will also swiftly push matters requiring legal amendments, such as securing the KAMCO fund budget and revising the Korea Housing Finance Corporation (HF) Act. The financial sector was asked to actively cooperate on the overhaul of syndicated loans and the creation of additional sector-specific private funds.
The Ministry of Land, Infrastructure and Transport (MOLIT) will also speed up institutional improvements to expand the supply of dwellings. On the 20th, it assessed that a foundation had been laid to expand the supply of dwellings and accelerate project timelines after six legislative tasks related to the Sept. 7 package passed the National Assembly plenary session. It also plans to make all-out efforts on follow-up measures so that the institutional improvements in the Aug. 13 package can be applied on the ground as quickly as possible.
The Financial Supervisory Service (FSS) and Korea Development Bank will each establish a "finance difficulty relief center" for PF and construction companies, respectively, as a follow-up to the Aug. 13 comprehensive financial measures. They plan to build a cooperative framework encompassing financial industry associations, public institutions such as the Korea Asset Management Corporation (KAMCO) and the Korea Housing Finance Corporation (HF), and related ministries including the Ministry of Land, Infrastructure and Transport (MOLIT) and the Office for Government Policy Coordination. The dedicated centers will begin operations on the 1st of next month. Going forward, if private financial companies and constructors and developers face financing difficulties in the process of communicating with financial sectors such as banks, securities, insurance, specialized credit finance, and mutual finance institutions regarding PF public guarantees and KAMCO fund matching, they can request support through the relevant center.
The Financial Supervisory Service (FSS) will expand the functions of the existing "real estate PF general support center" and reorganize it into the "PF finance difficulty relief center." The center will include a general task force serving as a control tower and operate units by field, such as evaluation management, syndicated loans, and institutional improvement. The plan is not only to resolve financing difficulties at individual business sites but also to link support with related institutional improvements.
The Financial Supervisory Service (FSS) will handle the received difficulties on its own or refer them to relevant institutions such as the Korea Housing Finance Corporation (HF), KAMCO, and financial industry associations for prompt resolution. It will also work closely with the construction company finance difficulty relief center operated by Korea Development Bank and with related ministries such as the Ministry of Land, Infrastructure and Transport (MOLIT) and the Office for Government Policy Coordination.
Korea Development Bank will separately establish a "construction company finance difficulty relief center" to unify the construction industry's communication channel for financial matters. Korea Development Bank will centrally receive construction companies' difficulties and either handle them internally or request reviews from financial industry associations. Upon receiving review requests, the financial industry associations will communicate quickly with individual financial institutions to convey the specific difficulties raised by construction companies.