South Korean authorities to manage 325 metropolitan PF sites

South Korean financial authorities are accelerating close management of 325 Project Financing (PF) sites in the metropolitan area expected to break ground or be completed by next year. The initiative aims to ensure that capital supply, including public guarantees and private financing, directly translates into housing supply.

Financial Services Commission Chairman Lee Eok-won visited the Pungmu Station area urban development site in Gimpo to inspect PF funding and construction progress. The site, involving approximately 2,700 residential units, serves as a model where Hoban Construction and Hoban Industry secured roughly 600 billion won through Korea Housing Finance Corporation (HF) guarantees to overcome delays caused by market uncertainty and rising costs.

To support these efforts, HF has increased its PF guarantee supply target from 6 trillion won to 9 trillion won this year. Additionally, KB Kookmin Bank plans to expand its internal limits for PF loans following its 4 trillion won disbursement earlier this year. The government also announced a two-year temporary suspension of certain capital adequacy regulations for residential PF projects to prevent liquidity bottlenecks in housing construction.