On the 20th, President Choi In-ho of Korea Housing & Urban Guarantee Corporation (HUG) said, "To expand dwellings supply, the role of the development industry, the first button of a project, is more important than anything," adding, "We will provide liquidity at low interest rates to business sites where projects with solid profitability have been delayed due to temporary liquidity shortages and high interest burdens."
Choi said this during a meeting with the leadership of the Korea Developers Association held at the association's office in Gangnam-gu, Seoul, on the day.
The meeting was arranged to hear directly the difficulties of "developers" (project developers), who are the starting point of dwellings supply, and to seek practical financial support measures to back the government's dwellings supply policy.
On the day, HUG pledged to continue expanding the supply of special guarantees for project financing (PF) to small and midsize builders and developers so that the transition from bridge loans to the main PF phase can proceed smoothly. It also promised financial support for smooth project execution, such as swiftly improving systems including the urban dwellings special agreement guarantee, to increase urban dwellings supply.
Choi emphasized, "To successfully carry out the government's plan to expand dwellings supply, we will increase the scale of guarantee supply related to dwellings construction this year to about 100 trillion won per year," adding, "We will become a solid pillar of the real estate ecosystem that connects development, construction, and finance, going beyond a simple guarantee institution."
The Korea Developers Association said, "HUG's preemptive guarantee support is greatly helping the industry's fundraising. In particular, when the PF market was difficult, HUG supplied PF guarantees and played a key role in stabilizing the market," adding, "We look forward to continued attention to voices from the field and practical institutional improvements going forward."