The Ministry of Land, Infrastructure and Transport will announce real estate supply measures between the 20th and 25th of this month, before the Chuseok holiday. The measures are expected to include plans to improve the cash flow of construction companies by resolving project financing (PF) insolvency and easing land permit regulations.
On the 5th, Minister of Land, Infrastructure and Transport Won Hee-ryong, responding to questions about the supply measures at the 'Small-scale Housing Management Fee Transparency Implementation Status Check Meeting' held at the Korea Internet Advertising Foundation in Yongsan-gu, Seoul, stated, "We aim to announce between the 20th and 25th of this month before Chuseok, and will consult with related ministries."
He added, "We will announce separately for public and private sectors, but this part needs to be coordinated with the Ministry of Economy and Finance and others. Internally, we convened the Housing Supply Innovation Committee at the end of last month, and this week we will launch the Construction Industry Innovation and Housing Supply Task Force (TF) to hold issue meetings," he elaborated.
The government is reportedly reviewing financial support related to PF and easing non-financial regulations. Minister Won said, "The Financial Services Commission sees that construction companies with large-scale projects can temporarily cover maturing debts, but uncertainties arise thereafter. We intend to support crisis response self-help measures such as additional capital injections, providing collateral, or selling profitable projects to ensure cash flow is not interrupted."
They also plan to examine whether there are elements that unnecessarily shrink the market contrary to intentions. Minister Won said, "There has been a contraction in supply financing," and "a fine adjustment will be made without touching interest rates."
Regarding housing supply, he diagnosed it as an 'initial emergency situation.' Minister Won stated, "We are against lying that supply is sufficient and causing the authorities to lose trust. The measures may be slightly delayed or early, but we will not ignore market signals or stubbornly push policy directions." He added, "Amendments to elements that halt transactions, such as the Reconstruction Excess Profit Recovery System and mandatory residence requirements, are stuck in the National Assembly. We want them to pass as soon as possible."
He also said, "To accelerate housing supply, land supply permits need to be expedited," and "We will implement policies overwhelmingly with an extraordinary sense of crisis regarding these issues."
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