The South Korea Financial Services Commission outlined plans for the Korea Asset Management Corporation to establish a KRW 3 trillion fund by the first half of 2027 to restructure stalled real estate project finance sites and accelerate housing supply. A follow-up to the commission’s Aug. 13 real estate market measures, the fund will comprise KRW 1.5 trillion each from public and private sources, with 60% designated for residential projects and expected to support about 18,000 homes. The existing KRW 1.1 trillion fund, established in September 2023, had invested KRW 819.3 billion by September 2026. Of this, KRW 373 billion went to residential sites expected to provide about 3,881 homes and semi-residential units. The commission highlighted a stalled KRW 300 billion Seoul project where a KRW 60.5 billion fund investment financed restructuring, including acquisition of land and project rights, conversion from urban residential units to apartments and selection of a new contractor. The 178-unit project is fully sold and scheduled for completion in December 2028. KAMCO plans to invite fund manager applications in October 2026, complete selections in December and establish the new fund in the first half of 2027.
2026-09-17South Korea Financial Services Commission
South Korea Financial Services Commission details KRW 3 trillion fund to revive stalled PF housing projects and support 18,000 homes
The South Korea Financial Services Commission detailed a KRW 3 trillion fund to restructure stalled project finance sites, with 60% targeted at residential projects expected to support about 18,000 homes. KAMCO plans to select managers by December 2026 and establish the fund in the first half of 2027. The existing KRW 1.1 trillion fund has invested KRW 373 billion in residential sites expected to supply about 3,881 homes and semi-residential units.