Minister of Land, Infrastructure and Transport "Recovery of private housing supply is important... HUG PF guarantee must be quickly supported" (comprehensive)

Visit to Godeok Gangil District… “We will provide all-out support to lead to actual commencement and completion of construction.”

(Sejong = Yonhap News) Reporter Lim Ki-chang and Oh Jin-song = Minister of Land, Infrastructure and Transport Hong Ji-seon visited a private housing construction site in the Godeok Gangil district of Seoul on the 8th and ordered the Housing and Urban Guarantee Corporation (HUG) to quickly provide project financing (PF) guarantees to avoid disruption in housing supply.

On this day, Minister Hong visited the 'Godeok Gangil Daesung Berhill' business site located in the Godeok Gangil district, inspected the status of the project, and held a meeting with housing construction officials, including implementers and construction companies. Minister Hong visited the Bucheon Daejang District of the 3rd new city as his first housing supply site on the 22nd of last month, and on this day visited a private housing supply site.

Minister Hong emphasized, "In order to achieve the goal of starting construction for more than 1.5 million households in the metropolitan area between 2026 and 2030, which the government promised to the people, the role of the private sector, which has accounted for more than 80% of the housing supply in the metropolitan area, is more important than anything else."

He then said that he is pursuing follow-up measures to the rapid housing supply plan announced on August 13 without a hitch in order to restore the private housing supply, which has shrunk after 2022.

The government is expanding the supply of PF guarantees from HUG and Korea Housing Finance Corporation (HF) to KRW 86 trillion from 2026 to 2028, and is promoting relaxation of urban and construction regulations and incentives for early construction starts.

Minister Hong asked, “Please make every effort to ensure that PF guarantees are provided quickly and without disruption from HUG so that construction finance does not become an obstacle to housing supply.”

In addition, he pointed out, “Even in regulated areas in the metropolitan area where housing supply is urgently needed, there are a significant number of businesses that have not been able to start construction after receiving permits due to financial or regulatory reasons.”

He said, "We plan to launch an integrated support organization for housing supply businesses at the government-level in the near future to provide close support to housing construction businesses at each stage of the project, from before licensing to after construction begins."

Minister Hong emphasized, “We need to mobilize all supply capabilities, regardless of whether public or private,” and added, “We will boldly resolve obstacles to housing supply so that the private supply ecosystem can be quickly restored.”

Minister Hong also posted on his

Regarding sites where construction is delayed due to concerns about unsold units even after receiving permits, he said, "We will support this with the Korea Land and Housing Corporation (LH)'s commitment to purchase unsold units and new construction purchase agreements, etc." He added, "In particular, we will begin construction of 140,000 rental housing units in the metropolitan area by 2030."