HUG President Choi Inho Inspects Unsold Housing Site in Busan: "Resolving Regional Unsold Inventory Is an Urgent Priority"

Visit to Unsold Safe Repurchase Project Sites

Listening to Local Construction Companies’ Concerns

Choi Inho, President of the Housing and Urban Guarantee Corporation (HUG), visited the site of a 'HUG Unsold Safe Repurchase' application project in Busan on the 17th to conduct an on-site inspection and held a meeting with local housing developers to discuss measures to resolve unsold housing inventory.

This on-site meeting was arranged so that the president could directly listen to the opinions of Busan-based construction companies interested in the unsold safe repurchase project, as well as stakeholders such as PF lenders, and to develop improvement measures.

Choi Inho, President of the Housing and Urban Guarantee Corporation (HUG) (fourth from the left), and officials are taking a commemorative photo at an unsold property safety resale project site in Busan on the 17th. Provided by HUG

The unsold safe repurchase project is a program in which HUG temporarily purchases unsold homes in regional areas before completion, supports the liquidity needed until completion, and then grants a repurchase option so that the project owner can buy them back after construction is finished. This initiative was fully launched after the government announced measures last year to strengthen construction investment in regional areas.

During the meeting, President Choi emphasized, "At the end of last year, the scale of unsold homes in Busan was about 7,500 units, the highest level nationwide. This leads to bankruptcies among local construction companies, job losses for construction workers, and the decline of nearby commercial districts, causing significant damage to the local economy. Therefore, it is imperative to resolve this issue as soon as possible."

He added, "To resolve the issue of unsold homes, we will promptly reflect in our regulations any suggestions raised today that can be implemented immediately, and we will prioritize promoting those that require inter-ministerial coordination. We promise to deliver changes that can be felt directly in the field."

At the site, some expressed that the safe repurchase project has helped secure liquidity. An industry official stated, "The safe repurchase program supports the completion of housing projects and guarantees stable loan repayment for financial institutions. It was highly effective in overcoming liquidity crises for construction companies during the 2008 global financial crisis as well. We express our appreciation to HUG for taking proactive steps to address the issue of unsold homes in regional areas."

This content was produced with the assistance of AI translation services.