South Korea expands housing supply support and financial aid

South Korean authorities, including the Financial Services Commission and the Ministry of Land, Infrastructure and Transport, have launched follow-up measures to the ‘August 13 Real Estate Measures’ to bolster housing supply. The government aims to address funding shortages in the construction sector by expanding financial support from 26.3 trillion won to over 47.8 trillion won.

To resolve liquidity issues, two specialized centers will begin operations on September 1. The Financial Supervisory Service will manage the ‘PF Financial Difficulty Resolution Center’ to handle project financing issues, while the Korea Development Bank will operate the ‘Construction Company Financial Difficulty Resolution Center’ to address the needs of builders. These centers will act as communication hubs between the private financial sector and construction entities.

Additionally, the government is prioritizing 11 out of 20 planned tasks for August, including legal reforms and the creation of additional funds. The measures focus on stabilizing the housing market by supporting the private supply ecosystem through deregulation and increased credit availability for new construction projects.