'Real Estate Development Equity Fund' Launched as Korea Developers Association and KB Securities Join Forces

[Financial News] The real estate development equity fund promoted by the Korea Developers Association is officially getting off the ground.
According to industry sources on the 3rd, the Korea Developers Association signed an agreement with KB Securities that day to jointly create a real estate development equity fund to revitalize domestic real estate development finance and expand the supply of new homes.
The agreement was designed to establish a mutually beneficial cooperation model by bringing together the association's experience and expertise in real estate development and KB Securities' track record of successfully executing project financing (PF) deals for major landmark real estate projects. It also aims to support small and midsize developers struggling to secure initial funding amid the recent freeze in the PF market.
The fund is the first tangible result of Chairman Hanmo Kim's pledge to launch a "financial seed fund" when he took office in February. The initiative is intended to put projects that have secured promising sites and permits back on track but have stalled because of insufficient initial capital.
Chairman Hanmo Kim emphasized, "This fund will serve the public goal of expanding housing supply while also laying the foundation for opening new opportunities for young people who aspire to become developers." He added, "Building on the fund's successful establishment, we will steadily lay the groundwork for creating a mutual aid association, a long-standing goal of the industry." Moon Sung-chul, group head at KB Securities, stated, "Through our partnership with the association, we will contribute to the soft landing of the PF market and the advancement of development finance."
[email protected] Jong-bae Lee Reporter