The Financial Services Commission said Chairperson Lee Eog-weon visited the Pungmu station area urban development project site in Gimpo, Gyeonggi, on the 10th to check on project financing (PF) funding conditions and hear requests from officials in the finance and construction sectors.
This site visit follows the Financial Services Commission (FSC)'s policy package "Comprehensive financial measures for stabilizing the real estate market," released on the 13th of last month. Chairperson Lee visited PF establishments in person to look into funding difficulties in the project implementation process and to ask the financial sector to ensure that the funds needed for sound business sites are supplied in a timely manner.
The Pungmu station area B4·B5·C5 blocks visited by the Financial Services Commission are a large-scale residential establishment of about 2,700 units supported by PF contractor guarantees from Korea Housing Finance Corporation (HF). The Pungmu station area urban development project did not proceed smoothly from the outset. As schedules were adjusted due to the real estate downturn in 2022–2023 and uncertainty in the presales market, financing costs increased, and stable PF funding emerged as a key task for expediting the project.
In this situation, Hoban Construction and Hoban Industry, which are in charge of development and construction, stably raised about 600 billion won through Korea Housing Finance Corporation (HF)'s PF contractor guarantee. On this basis, they kept the project on track and are now proceeding in earnest with dwelling construction and presales procedures. As project costs rose recently due to higher construction costs and interest rates, they also secured additional project funds stably by using HF's "construction cost plus PF guarantee," which can supply guarantees even after groundbreaking.
Chairperson Lee said, "The Pungmu station area urban development project is a success case showing how PF financial support leads to actual dwelling supply," adding, "The government will continue to actively listen to voices on the ground, promptly resolve difficulties, and prepare necessary financial support measures, sparing no support to promote dwelling supply," and, "We plan close management of 325 PF business sites in the greater Seoul area that are expected to start or complete construction in 2027."