The Financial Supervisory Service (FSS) will closely manage 325 residential real estate project financing (PF) projects in the metropolitan area that are expected to begin construction or be completed by next year. To ensure the smooth supply of approximately 180,000 housing units, the FSS plans to conduct a comprehensive review of factors causing delays and provide tailored support—including funding assistance and necessary permits—on a project-by-project basis.
On the 3rd, the FSS held a symposium titled "Symposium for Promoting Rapid Housing Supply" with industry stakeholders from the financial sector to discuss this plan for close management of residential PF projects. This initiative follows the recently announced "Comprehensive Financial Measures for Stabilizing the Real Estate Market on the 13th."
There are 502 residential PF projects in regulated areas of the metropolitan area where financial institutions participated as main lenders, covering approximately 300,000 housing units. Including 99 residential projects sold by financial institutions to their own funds—accounting for about 30,000 units—the total reaches 601 projects and approximately 330,000 housing units.
Among these, the FSS has decided to prioritize management of 325 projects where financial institutions are directly participating as main lenders or where funds held by the financial sector's own investment vehicles are expected to begin construction or be completed by next year. For the remaining projects, the FSS will regularly monitor progress and add those that can accelerate supply once delay factors are resolved to the close management list.
For each of the 325th projects, one official will be designated from both the FSS and the respective financial institution. After thoroughly identifying the causes of delays, the FSS will implement customized support measures categorized into four types: normal progress, supply promotion, normalization support, and sale facilitation.
For projects delayed due to temporary funding shortages, the FSS will link them with syndicated loans, PF development anchor REITs, or KAMCO funds. Projects requiring PF guarantees will be connected with the Housing Urban Guarantee Corporation (HUG) or the Korea Housing Finance Corporation (HF). Those seeking conversion to public rental housing will be linked with the Korea Land and Housing Corporation (LH). If non-financial issues such as permits become obstacles, the FSS will refer them to relevant ministries including the Ministry of Government Administration and Home Affairs and the Ministry of Land, Infrastructure and Transport to facilitate resolution.
For projects where sale is virtually the only normalization option, the FSS will encourage resumption of operations through rapid sales. For projects progressing normally, support measures will be linked if financial or permit-related assistance can accelerate construction start dates or completion timelines.
To implement this, the FSS has established a "Housing Supply Promotion Financial Support Team" and expanded its dedicated personnel for PF projects from five to 25. Financial institutions have also agreed to assign project-specific officers who will immediately report any anomalies to the FSS.
Since the first of this month, the FSS has also been operating a "PF Financial Obstacle Resolution Center" to receive concerns from main lenders and developers regarding PF projects. The center handles inquiries about funding support programs and suggestions for improving prudential regulations, connecting each case with relevant institutional investors as needed. It collaborates with the "Rapid Supply Promotion Task Force" led by the Ministry of Government Administration and Home Affairs, as well as the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, the Korea Development Bank, and the Korea Land and Housing Corporation.
The FSS emphasized, "Given that rapid housing supply is the top priority to alleviate public housing anxiety, we urge the financial sector to carefully monitor on-site conditions at PF projects."
in FINANCE
