Financial Services Commission Holds Real Estate PF Inspection Meeting
[Asia Economy Reporter Yu Je-hoon] The financial sector is considering activating a real estate project financing (PF) lenders' council to induce a soft landing in the real estate market.
According to the financial sector on the 19th, the Financial Services Commission held a real estate PF inspection meeting on the 17th at the Government Seoul Office with the five major financial holding companies, policy banks, and related institutions. Executives in charge of PF from the five major financial holding companies attended the meeting.
At the inspection meeting, it was reported that there was a shared recognition that although the government's liquidity supply measures and real estate regulation easing have led to a stabilization trend in the market, the possibility of a hard landing caused by real estate PF has not completely disappeared.
Additionally, the meeting considered reactivating the PF lenders' council to jointly respond to the potential deterioration of real estate PF. Previously, after the 2008 global financial crisis, the government activated the council as the real estate market sharply cooled, conducting restructuring targeting construction companies and projects. The council plays a role in restructuring and normalizing distressed PF projects through joint management among financial institutions.
The Financial Services Commission stated, "We are implementing various market stabilization programs to ensure a soft landing of the real estate PF market, and we plan to continue exploring additional policy measures from multiple angles. In this process, we are also reviewing the appropriateness of the PF lenders' council operation agreement, which was established in 2009 and is still in operation."
The Dunchon Jugong union and the construction business group have agreed on 8 out of 9 major issues. The 8 agreed clauses are ▲ re-verification of the existing construction cost increase ▲ review of the sale price ▲ general sales and union member sales ▲ design and contract changes ▲ verification ▲ general meeting resolution ▲ resumption of construction ▲ effectiveness of the agreement and responsibility in case of violation. However, since there is a disagreement regarding the commercial dispute, more time is expected before construction can resume. A view of the Dunchon Jugong reconstruction site in Gangdong-gu, Seoul, on the 7th. Photo by Moon Honam munonam@
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