Government to Launch PF and Construction Company Financing Relief Center on September 1, Strengthen Financial Support for Housing Supply

The government will launch a dedicated channel next month to help resolve financing difficulties at Project Financing (PF) sites and for construction companies. The plan is to connect support from multiple institutions, including guarantees, funds and consultations with financial institutions, in order to keep funding flows moving smoothly at housing supply sites.
According to the Ministry of Land, Infrastructure and Transport and the Financial Services Commission (FSC) on the 28th, the two ministries held a kickoff meeting for their regular consultation with the construction and financial industries at Government Complex Seoul. They reviewed progress on the comprehensive real estate financial measures announced on August 13 and discussed ways to support the private housing supply ecosystem.
The Financial Supervisory Service will expand and reorganize its existing real estate PF support center into the 'PF Financing Relief Center.' Centered on a general team, it will also include teams in charge of assessment and management, syndicated loans and institutional improvements. The center will handle submitted cases directly or connect them with the Korea Housing Finance Corporation (HF), the Korea Asset Management Corporation (KAMCO) and financial industry associations. It will also work with KDB's construction company center, the ministry's on-site grievance support center and the rapid supply task force under the Office for Government Policy Coordination.
KDB will establish a 'Construction Company Financing Relief Center' for the top 100 construction firms in the 2026 construction capability evaluation for housing supply. When a construction company submits a request, KDB will compile the details and ask the company's main bank of choice, or the bank with the largest outstanding loan balance, to review the case.
If no bank is selected, the bank with the largest share of outstanding loans as of the end of the previous month will be determined using data from the Korea Credit Information Services. Before the electronic system is built, requests will be received by phone, and KDB will compile the response results and report them to the FSC every month.
The two centers will begin operating on September 1. Since support procedures such as PF public guarantees, KAMCO's normalization support fund, project-specific guarantee limits and syndicated loan matching are closely linked, the centers are expected to serve as early channels for identifying financing bottlenecks at individual projects.
The FSC will first implement 11 of the 20 housing supply financing tasks under the August 13 measures that can be carried out this month. It will also push ahead with securing a budget for the KAMCO fund and revising the Korea Housing Finance Corporation Act. In addition, it has asked the financial sector to cooperate on restructuring syndicated loans and creating additional industry-specific funds. Financial institutions plan to review their own implementation plans for troubled housing projects in the Seoul metropolitan area, analyze the causes of delays and move forward with normalization.
Kim Yi-tak, first vice minister of land, infrastructure and transport, said, "To expand housing supply, smooth financing must be in place." He added, "The ministry, the FSC, the construction industry and the financial sector will work closely together to achieve the supply targets."

[email protected] Jang In-seo Reporter