Vice Chairman Lee Eogwon of the Financial Services Commission Inspects Gimpo PF Site: “Close Management of 325 Greater Seoul Area Projects”

On-Site Check of PF Funding After August 13 Measures
Secured 600 Billion Won Through Korea Housing Finance Corporation PF Guarantee
Listening to Practical Challenges in the Financial and Construction Sectors

Lee Eogwon, Vice Chairman of the Financial Services Commission, visited the PF (Project Financing) site of the Pungmu Station District Urban Development Project in Gimpo, Gyeonggi Province to inspect the status of project financing fund procurement.

Yonhap News Agency

The Financial Services Commission announced on the 10th that it held a "Gimpo PF Project Site Meeting" at the PF project site of Pungmu Station District in Gimpo. Vice Chairman Lee’s visit was conducted to review the on-site implementation of the "Comprehensive Financial Measures for Stabilizing the Real Estate Market" announced on August 13. On this day, Lee listened to the financing challenges and suggestions from project operators, construction companies, and representatives from the financial and construction sectors. The meeting attended by Hoban Construction, Korea Housing Finance Corporation, KB Kookmin Bank, Korea Federation of Banks, Gimpo Urban Corporation, and the Korea Construction Association, provided a platform to share on-site difficulties and discuss possible improvements to relevant systems.

Vice Chairman Lee said, "The urban development project in the Pungmu Station District, which I visited today, is a success story that demonstrates how PF financial support can be translated directly into actual housing supply," adding, "We plan to closely monitor 325 PF projects in the Seoul metropolitan area that are expected to begin or be completed by 2027."

The Pungmu Station District urban development project faced difficulties raising financial costs as the project timeline was adjusted amid a slowdown in the real estate market and uncertainty in the housing pre-sale market. As a result, stable PF fund procurement emerged as a key issue for the prompt execution of the project. Subsequently, Hoban Construction and Hoban Industry, through a PF project guarantee from Korea Housing Finance Corporation, secured approximately 600 billion won in funding. Based on this, the project has normalized and is now proceeding with full-scale housing construction and pre-sale procedures.

Park Cheolhee, CEO of Hoban Construction, who attended the meeting, said, "Even in the midst of ongoing uncertainty in the pre-sale market and construction industry, the project was able to proceed stably thanks to improved funding conditions made possible by the PF guarantee from Korea Housing Finance Corporation."

Kim Kyunghwan, CEO of Korea Housing Finance Corporation, said, "Since the August 13 measures, we have immediately expanded the guarantee supply target and completed related institutional improvements," adding, "We will continue to steadily pursue tasks to promote housing supply, such as introducing new guarantee products to support urban renewal and rental businesses."

Lee Hwanju, CEO of KB Kookmin Bank, said, "KB Kookmin Bank is actively providing financial support for housing supply, including handling approximately 4 trillion won in PF loans this year alone," and added, "In order to meet the government’s goal of 'ensuring stable funding for housing supply,' as emphasized in the previous meeting between the financial and construction sectors, we plan to significantly expand our internal PF limits and continue to actively support financing."

This content was produced with the assistance of AI translation services.