The South Korea Financial Services Commission and Ministry of Land, Infrastructure and Transport launched a regular finance and construction industry forum to accelerate housing supply and reviewed implementation of the Aug. 13 real estate finance package. As a new follow-up step, the Financial Supervisory Service and Korea Development Bank will operate dedicated centers from Sept. 1 to address financing difficulties affecting project finance (PF) projects and construction companies. The commission plans to expedite 11 of the package’s 20 measures that can be implemented in August, while advancing funding for the Korea Asset Management Corporation fund and legislative changes, including an amendment to the Korea Housing Finance Corporation Act. It also asked financial institutions to support changes to syndicated lending and establish additional sector-specific funds. Lenders are expected to review implementation plans for distressed residential projects in the Seoul metropolitan area, identify causes of delay and pursue normalization. The Financial Supervisory Service will expand its existing real estate PF support center to handle project assessments, syndicated loans and related regulatory improvements, referring cases to public agencies and industry associations where necessary. Korea Development Bank will provide a single channel for construction companies’ cases and coordinate with financial industry associations and individual institutions. The centers will cover issues including public PF guarantees, fund matching and communication with lenders across banking, securities, insurance and other financial sectors.

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