Shinhan Bank Provides 550 Billion KRW Support to Real Estate PF Market

New Funding of 250 Billion KRW and Bridge Loan Extension of 300 Billion KRW

Shinhan Bank announced on the 22nd that it has decided to provide liquidity support to reconstruction projects facing difficulties in securing funds due to increased construction costs caused by rising raw material and labor costs.

First, 250 billion KRW in new funds will be provided. Typically, large-scale new fund support is carried out by forming a consortium with other financial institutions and major lenders, but Shinhan Bank decided to proceed independently for swift support. A Shinhan Bank official explained, “Although part of the new fund support is subordinated compared to existing loans in terms of bond preservation, we decided to provide additional funding to ensure the smooth progress of real estate project financing (PF) projects.”

They will also pursue a maturity extension of a 300 billion KRW bridge loan. This will provide liquidity support to help normalize the projects, and they are considering converting it into a main PF after reviewing conditions such as the construction company’s responsibility for completion.

An official from the bank said, “Due to the tightening of funds in the real estate PF market, not only construction companies but also residents are experiencing inconveniences such as delays in move-in dates. We will proceed with prompt funding support to help stabilize the real estate market.”