▲ Villas in Seoul
The government is accelerating housing projects by addressing on-site bottlenecks, such as delays in project financing (PF) guarantees and fund investments.
The Ministry of Land, Infrastructure and Transport (MOLIT) announced today that it has prepared customized support plans for four projects that can be resolved immediately, out of 24 on-site grievances received through its support center.
Since its launch on May 29, the support center has received a total of 24 complaints over the past two weeks.
Including cases that submitted multiple project sites, this covers a total of 30 projects, amounting to approximately 15,000 housing units.
For instance, a mixed-use residential project in Yongsan-gu, Seoul (136 apartment units), was in urgent need of a PF guarantee from the Korea Housing & Urban Guarantee Corporation (HUG) to transition to main project financing ahead of its bridge loan maturity at the end of this month.
The Ministry plans to shorten the HUG guarantee review period, which typically takes about two months, to ensure the PF guarantee can be issued within this month, provided that the guarantee requirements are met.
A 855-unit residential project in Jisan-dong, Pyeongtaek, Gyeonggi Province, was struggling with determining appropriate pre-sale prices and selecting a contractor due to a lack of comparable sales cases in the old city center.
In response, HUG plans to provide consulting for calculating appropriate pre-sale prices to support the developer in utilizing PF guarantees.
Furthermore, the Ministry intends to develop an AI-based method for calculating appropriate pre-sale prices that reflects location characteristics within this year to respond to similar cases in the future.
Additionally, the Ministry plans to establish relevant regulations to allow for the reflection of increased material costs—driven by factors such as the war in the Middle East—into appropriate pre-sale prices, with implementation scheduled for July.
A 585-unit public-supported private rental housing project in Oryu-dong, Guro-gu, Seoul, and a 1,595-unit project in Jangan, Hwaseong, Gyeonggi Province, had requested prompt deliberations on Housing and Urban Fund investments to minimize financial costs. However, timely reviews were difficult due to an increase in the number of applicants and budget requirements.
The Ministry plans to hold the Fund Investment Deliberation Committee starting in early July to quickly review whether these projects, along with other pending ones, meet the requirements for investment, with the goal of encouraging construction to begin within the year.
The remaining 20 projects submitted requests regarding the rationalization of urban planning, permission for developer loans secured by houses scheduled for demolition, financing support, and the expedited implementation of purchase-rental projects.
The Ministry plans to provide swift support for grievances that can be resolved immediately, while reviewing whether to improve tasks that require institutional changes in consultation with relevant ministries and agencies.
Minister of Land, Infrastructure and Transport Kim Yun-duck stated, "The field is more important than anything else for expanding housing supply," adding, "We will do our utmost to stabilize the housing market by frequently listening to voices from the field and supplementing supply measures."
※ Please note: This article was translated by AI and may contain errors.