Private Sector Accounts for 80% of Housing Supply... Ministry of Land, Infrastructure and Transport to Accelerate via PF Guarantees and Financial Support

With the private sector responsible for more than 80% of the total housing supply, the government has introduced active support measures to resolve financial and institutional difficulties arising during the project implementation process. The Ministry of Land, Infrastructure and Transport visited the Godeok-Gangil District housing construction site to inspect the progress of the work and held a meeting with construction industry officials to discuss revitalizing private housing supply.

Inspection of Godeok-Gangil District Progress and Strengthening On-site Safety Management

The Godeok-Gangil District housing construction site inspected by the Ministry of Land, Infrastructure and Transport is scheduled to break ground on May 20, 2025, and will take approximately 29 months of construction until October 20, 2027. The site area is planned to be 11,000 pyeong, and the total floor area is planned to be approximately 34,238 tons. The entire construction is planned to be completed by July 31, 2027, after which an internal quality inspection will be conducted, and a three-day pre-occupancy inspection for residents will be held from August 21 to 23.

Safety and environmental management measures were also discussed at the site. In particular, efforts are being focused on safety management, such as deploying school commuting assistants and signalmen during school arrival and departure hours to prevent friction between construction vehicles and pedestrians. The Ministry of Land, Infrastructure and Transport urged site officials to do their utmost in fire management and site safety management to prevent safety accidents, such as falls or falling objects, which could cause greater costs than trying to save on incidental expenses.

Promoting Supply through Expanded PF Guarantees and Financial Support

In the subsequent meeting, the Ministry of Land, Infrastructure and Transport presented specific measures to lower the financial barriers blocking private housing supply. The government plans to provide various incentives for sites that break ground early and to actively resolve difficulties related to development charges and PF (Project Financing) loans.

In particular, to solve the problem of sites that suffer losses because they cannot begin construction due to funding issues despite receiving permits, a new organization dedicated to handling site difficulties will be launched in collaboration with the Financial Services Commission. Additionally, moving away from the existing screening system centered on large construction companies, the 'HUG Specialized PF Special Guarantee for Small and Medium-sized Construction Companies' has been in effect since September 4 to support small and medium-sized construction companies. This system significantly raises the business feasibility evaluation score and has set the guarantee supply target at over 3 trillion won.

Regarding the industry's demands for financial support and tax benefits for unsold units, the government expressed its intention to review the matter positively. The Ministry of Land, Infrastructure and Transport explained that it would conduct consultations by comprehensively considering the acquisition of unsold units with relevant ministries. Furthermore, the Ministry plans to focus on increasing the consistency and predictability of housing finance policies so that housing construction companies can establish business plans from a long-term perspective.

Source: original video (YouTube)