Minister Hong Jiseon: "Interagency Support Body to Launch to Ensure Housing Permits Lead to Construction Starts"

Minister of Land, Infrastructure and Transport Inspects Private Apartment Project Site in Godeok-Gangil
Land Ministry and Financial Services Commission to Launch Integrated Housing Supply Support Body Soon

Hong Jiseon, Minister of Land, Infrastructure and Transport, visited the construction site of Daesung Berhill apartments in Seoul's Godeok-Gangil district on October 8 to review the project’s progress and meet with officials.

After visiting the Bucheon Daejang district, one of the third-generation new towns, on the first day of taking office last month, she visited a private housing supply site this time. The move reflects her commitment to overseeing housing supply as a whole, regardless of whether projects are private or public. During this visit, Minister Hong confirmed with the project operator that the project was proceeding without disruption, with its costs funded through project financing (PF) guarantees from the Korea Housing & Urban Guarantee Corporation (HUG).

Minister Hong said, "The private sector, which has accounted for more than 80% of housing supply in the Seoul metropolitan area, has a particularly important role to play in achieving the government’s goal of starting construction on '1.5 million homes plus more' in the metropolitan area over the next five years, as promised to the public."

Hong Ji-seon, Minister of Land, Infrastructure and Transport, visited a private apartment development site in the Goduk-Gangil District on the 8th to review its progress. Photo courtesy of the Ministry of Land, Infrastructure and Transport.

The government has introduced various policies to revive the contracting private housing supply market. These include increasing the supply of PF guarantees from HUG and the Korea Housing Finance Corporation (HF), temporarily suspending for two years the capital ratio regulations for PF financing at housing project sites, revising building regulations on the floor area, number of floors and sunlight access for multiplex and multi-family homes, and providing incentives for projects that start construction early.

Minister Hong said, "Government support is beginning to show results, and local governments and the industry are responding to the government's push to expand supply. As a result, building permit approvals, a leading indicator, are showing signs of recovery, particularly in Seoul and other regulated areas. We will bring together the resources of the entire government and provide all-out support so that the recovery in permit approvals leads to actual construction starts and completions, allowing the public to feel the effects of increased housing supply."

She added, "Even in regulated areas of the Seoul metropolitan area, many projects have not been able to start construction after receiving permits, due to financial and regulatory issues, among other reasons. Several support bodies help address difficulties at individual project sites, but we will soon launch an interagency body to provide integrated support to housing supply projects and closely assist them at each stage. The Ministry of Land, Infrastructure and Transport plans to combine its Rapid Permit Support Center and Field Difficulties Resolution Center with the Financial Services Commission’s PF and Construction Company Financial Difficulties Resolution Center."

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