FSC Accelerates Housing Supply Support Measures: “Implementation Progress to Be Reviewed Weekly”

[Financial News] The Financial Services Commission (FSC) will review the implementation of housing-supply support measures under the August 13 real-estate financial measures every week.
On the 9th, the FSC discussed the progress of 21 detailed supply-related tasks under the August 13 comprehensive financial measures at a meeting to review financial support measures for promoting housing supply, chaired by Jeon Yo-seop, Director of the Financial Policy Bureau. Of the 21 tasks, 12 had already been completed last month.
Completed tasks include expanding project financing (PF) guarantees, lowering guarantee fees, increasing guarantee coverage for residential project sites, and improving the method for calculating the loan-to-value (LTV) ratio for relocation loans. In consultation with the financial sector, the FSC also prepared a plan to exclude relocation loans and other loans from household-loan volume management.
The regulation on the equity-capital ratio for housing PF projects will be temporarily deferred for two years for residential project sites. After gathering opinions from the financial and construction industries, the FSC plans to announce detailed measures as early as this month. For non-residential project sites, however, the regulation is scheduled to be introduced in 2027 as planned.
The securities industry plans to establish additional self-managed funds worth KRW 2.1 trillion by the end of the year, bringing the current total to KRW 7.3 trillion. The Korea Asset Management Corporation (KAMCO) PF normalization support fund is under parliamentary review for a KRW 500 billion budget allocation next year. In preparation for the budget’s approval, KAMCO plans to announce a call for fund managers next month and complete the selection process by the end of the year. Of the KRW 1.1 trillion in the first fund, KRW 813.7 billion has already been invested.
Jeon Yo-seop, Director of the Financial Policy Bureau, emphasized, “Tasks that could be implemented immediately have been carried out swiftly since the August 13 measures were announced.” He added, “What is even more important is whether the improved systems and measures actually lead to an expansion of housing supply. To ensure the swift implementation of supply-related tasks, we will hold review meetings regularly once a week for the time being and strengthen communication with related institutions to actively support housing supply from the financial side.”
[email protected] Park Moon-soo Reporter