Four construction organizations, including the Korea Construction Association, will take the lead in resolving difficulties faced by the construction industry due to issues with real estate project financing (PF).
The Korea Construction Association, Korea Housing Association, Korea Housing Builders Association, and Korea Real Estate Development Association announced on the 13th that they will open and operate a 'Real Estate PF Difficulty Reporting Center' starting from the 16th.
The reporting center will support the resolution of problems currently faced by the construction industry, such as difficulties related to ongoing real estate PF restructuring, unfair practices in real estate PF, and excessive fees. Each association will operate its own reporting center, accepting online reports (anonymous reporting available) as well as offline reports through visits to the associations.
Reportable issues include ▲unreasonable cases related to PF feasibility evaluation and post-management plans ▲contract terms unilaterally unfavorable to borrowers in agreements ▲cases of excessive PF fees ▲unfair credit enhancement related to completion guarantee commitments, among others. Cases received by each association's reporting center will be forwarded to the Ministry of Land, Infrastructure and Transport and financial authorities.
A representative from the Construction Association stated, "The newly launched reporting center will play a significant role in resolving difficulties faced by the construction industry related to real estate PF and correcting long-standing unfair practices."
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