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Sunday, 9 August 2026 Reading Room

Finance & Markets

The ‘bold promotion of housing supply’ real estate finance… Expansion of public guarantee for PF, etc. discussed

Translated from Korean Read in Korean

hani.co.kr ·

Financial authorities are considering various real estate financing cards to support President Yoon Suk-yeol's 'aggressive housing supply' promotion. They are reviewing the expansion of public guarantees for property project financing (PF) and adjusting the loan-to-value ratio (LTV) for inner-city housing mortgage loans. The atmosphere is tense due to reduced speculation in second-home sales and condominium purchases after the tax reform proposal.

The Financial Services Committee is reviewing ways to ease supply constraints, with the most likely proposal being expanded public guarantees for PF projects. Banks and financial institutions have long viewed PF business loans as high-risk, so expanding the public guarantee coverage from the land purchase stage to the full project could help fund the projects more smoothly.

The annual PF guarantee limit is 6 trillion won, with 3.2 trillion won already used in the first half of the year. The LTV ratio for inner-city housing mortgage loans may also be changed, allowing the use of higher-end housing instead of existing housing for loans. This change is expected to increase loan amounts. Rental business loan regulations may also be relaxed partially.

Last year's 9·7 housing measures allowed for loans for new housing construction used as collateral for initial mortgages, while other mortgage loans were not permitted. The authority is considering expanding the exceptions to further activate rental housing supply. Concerns are rising about the impact of the new tax reform proposal on the month-end property market and the high rate of 'speculative property transfers' by second-home owners, which could lead to stricter regulations on second-home sales.

The finance ministry has already announced a plan to tighten the rules for leasing loans from second-home owners, with government agencies proposing to reduce the guarantee ratio or even prohibit guarantees as possible solutions. The finance department has indicated that they are considering various financial support measures to promote housing supply, but no specific plans have been finalized yet. The government plans to release the housing supply measures within the next week.

Written by urgent.news from Hankyoreh's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at hani.co.kr →

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·hani.co.kr

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