Weekly housing supply review meetings launched

12 of 21 tasks from Aug. 13 measures completed

The Financial Services Commission's office at Government Complex Seoul in Jongno-gu, Seoul (Yonhap)
The Financial Services Commission's office at Government Complex Seoul in Jongno-gu, Seoul (Yonhap)

Financial authorities will hold weekly meetings to review housing supply as a follow-up to the Aug. 13 real estate measures. Authorities have so far completed 12 tasks, including easing project financing regulations.

The Financial Services Commission held a meeting on financial support measures to boost housing supply Wednesday, chaired by Jeon Yo-seop, director general of the Financial Policy Bureau. The meeting reviewed progress on 21 detailed supply-related tasks under the Aug. 13 financial measures.

The meeting, held that day, was attended by various financial associations along with the Korea Housing Finance Corporation and the Korea Asset Management Corp. Authorities plan to hold the review meeting once a week to monitor follow-up measures.

"What matters is whether the improved regime and measures actually translate into an expansion of housing supply," Jeon said. "The FSC will regularize the review meetings on a weekly basis for now to swiftly carry out the supply tasks, strengthen communication with related institutions and do everything possible to support housing supply from a financial perspective."

So far, financial authorities have completed 12 of the 21 supply tasks. The equity capital ratio regulation on project financing for residential projects will be suspended for two years to boost housing supply. Following consultations with the financial and construction industries, detailed plans are expected to be announced as early as September. However, the equity capital ratio regulation for non-residential projects will be introduced as originally planned.

Regulators are holding regular working-level meetings with the banking and insurance sectors to restructure syndicated loans and ensure smooth investment execution.

Authorities plan to designate officials for each project financing site and operate a close monitoring system. They are compiling sector-by-sector plans to raise about 7.3 trillion won ($5.44 billion) in additional self-funded funds across the financial industry. The securities industry plans to raise an additional 2.1 trillion won in its own fund.

The Korea Asset Management Corp.'s project financing normalization fund will also launch soon. The National Assembly is currently reviewing a related budget of 500 billion won.

Through the Aug. 13 measures, authorities raised this year's household loan growth target from the previous 1.5 percent to 3.0 percent. Last month, they allocated additional loan quotas to each financial company based on the raised target.


hyuk@heraldcorp.com