On the 14th, President Choi In-ho of Korea Housing & Urban Guarantee Corporation (HUG) visited a project financing (PF) guarantee business site in Wonju, Gangwon Province, to inspect the site. The visit aimed to invigorate PF guarantees to support the supply of dwellings and to hear directly from housing project operators amid a slump in local housing markets.
At the roundtable, Choi said, "We are acutely aware that housing project operators are facing difficulties in raising funds due to the recent downturn in local housing markets," adding, "We will actively reflect on-the-ground challenges in policy and do our utmost to provide tailored financial support so the construction industry can regain vitality."
An industry official who attended the roundtable said, "At a time when the PF market is contracting, HUG's proactive guarantee support is a great help to corporate management," adding, "We hope the voices from the field will lead to actual institutional improvements."
To support the government's expansion of dwelling supply, HUG has increased the scale of guarantees related to dwelling construction projects—such as pre-sale, PF guarantees, and maintenance project guarantees—to around 100 trillion won annually over the next five years. HUG also decided to lower guarantee fees and extend the special period easing PF guarantee requirements to support the construction industry struggling with rising material costs originating from the Middle East.
HUG plans to continue on-site communication and prepare practical institutional improvement measures to support housing project operators.