The Construction Association of Korea welcomed the government's 8·13 plan to swiftly supply dwellings and its financial measures to stabilize the real estate market.
On the 14th, the association said about the plan to swiftly supply dwellings and the comprehensive financial measures for real estate market stabilization that the government released on the 13th, "Deferring the implementation of the higher equity ratio for residential project financing (PF) from 2027 to 2029 and expanding the PF guarantee supply target will help normal business sites struggling with tight financial markets to raise funds."
The association viewed positively that the proposals it has made so far—deferring the increase in the PF equity ratio, easing regulations on relocation loans, and expanding exceptions for mortgage loan eligibility for dwelling project operators—were reflected.
The association also viewed that special PF guarantees for small and midsize builders, expanding the scale of construction cost-plus PF guarantees, and extending the period for guarantee fee reductions would ease the financial burden on private dwelling projects. It also forecast that improving the method for assessing collateral value related to relocation loans and creating a new guarantee product for relocation loans would reduce members' funding burdens and facilitate relocation and groundbreaking.
However, the association said, "Only if follow-up institutional improvements and guarantee product overhauls are implemented quickly will on-site increases in dwelling starts and supply be tangible," adding, "The industry will actively cooperate with government policy."