Visit to Day&View Site in Pungdong, Ilsan on the 5th
"Smooth Promotion of 'Real Estate PF System Improvement Measures'"
Support of 359 Billion KRW Provided to 3 Sites So Far
Kim Byung-hwan, Chairman of the Financial Services Commission, visited the Day & View project site in Pung-dong, Ilsan, Goyang-si, Gyeonggi-do, supported by the bank and insurance sector PF syndicate loan, on the 5th. He stated, "Currently, the orderly landing of real estate PF (project financing) is progressing within a predictable and manageable range," and added, "The inflow of private sector funds into the restructuring, liquidation, and non-performing loan purchases, which were previously led by the government and public institutions, is gradually expanding."
Chairman Kim made these remarks during an on-site meeting in the afternoon with developers, construction companies, and financial institutions. He explained that private funds such as the syndicate loan (KRW 1 trillion), securities industry funds (KRW 3.3 trillion), and the KAMCO-Saemaeul Geumgo fund (KRW 500 billion) are flowing into the real estate PF market.
The bank and insurance sector PF syndicate loan was established and launched as part of the "Orderly Landing Measures for Real Estate PF" announced in May. It was created with a scale of KRW 1 trillion (up to KRW 5 trillion) through cooperation between banks and insurance sectors to promote the circulation of funds in the real estate PF market. Since its launch, support amounting to KRW 359 billion has been provided to three project sites.
Chairman Kim emphasized, "The orderly landing of real estate PF is a very important task not only for market stabilization but also for housing supply." He continued, "We will continue monitoring residential projects mainly in the metropolitan area and gather on-site difficulties to help individual PF projects normalize more quickly."
The Day & View project in Pung-dong, visited that day, experienced delays and increased construction costs due to the discovery of contaminated soil. However, with KRW 200 billion supplied from the PF syndicate loan, normal project progress became possible. This project is a regional housing association project constructing and supplying 2,090 apartment units.
The Pung-dong Day & View regional housing association and POSCO E&C stated, "By becoming a target of the syndicate loan support, the financing conditions have become more favorable than before, and the responsibility completion deadline has been extended, creating an environment where construction can be carried out stably."
Lee Seok-yong, President of NongHyup Bank, who attended the meeting, said, "Thanks to the consistent real estate PF orderly landing measures by financial authorities, the initially feared sharp downturn in the real estate market did not occur," and added, "We will continue to actively cooperate to create conditions for the public's housing stability."
Meanwhile, Chairman Kim stated, "We will also steadily implement the real estate PF system improvement plan announced on the 14th of last month," adding, "To prevent a contraction in housing supply, the strengthening of financial regulations will be phased in after a grace period, and will be applied to PF loans after the implementation period."
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