Geonsanyeon-HUG Collaborate to Improve Structural Issues in Housing and Real Estate Finance

The Korea Research Institute for Construction Industry announced on the morning of the 21st that it signed a business agreement with the Housing and Urban Guarantee Corporation (HUG) at the Construction Hall in Gangnam-gu, Seoul, to develop the housing and real estate finance market.

Lee Byung-hoon, Acting President of the Housing and Urban Guarantee Corporation (HUG) (left), and Lee Chung-jae, President of the Korea Research Institute for Construction Industry, are posing for a commemorative photo after signing a "Business Agreement for the Development of the Housing and Real Estate Finance Market" on the morning of the 21st at the Construction Hall in Gangnam-gu, Seoul. / Photo by Korea Research Institute for Construction Industry

Recently, the domestic housing and real estate finance market has shown signs of a prolonged slump due to external factors. Since the second half of last year, the real estate market decline has accelerated due to interest rate hikes and rising raw material prices, and the volume of unsold properties is rapidly increasing.

In response, the Korea Research Institute for Construction Industry decided to collaborate with HUG to identify and improve the structural problems of the repeatedly crisis-prone market. Specifically, they shared information on market and policy issues and ideas for institutional improvements, and discussed plans to hold public research and joint seminars based on this when necessary.

Lee Chung-jae, President of the Korea Research Institute for Construction Industry, said, "As the linkage between the real and financial markets increases, changes in the financial market are directly affecting the construction industry." He added, "In response, the institute has designated housing and real estate finance as a specialized research field and is conducting in-depth studies." He also stated, "We will present proactive research results to improve the structural problems of housing and real estate finance through organic cooperation with HUG."

Lee Byung-hoon, Acting President of HUG, said, "We have been considering ways to strengthen our role in stabilizing the market recently." He added, "Through cooperation with the Korea Research Institute for Construction Industry, a think tank with 28 years of history in the construction sector, we hope to present various ideas and have them reflected in national policy."

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