Korea Housing Finance Corporation Improves Criteria for Exemption from Joint Guarantees for Construction Companies

Immediate Exemption After Certificate of Use

Financial Burden Eased, Opportunities for New Contracts Expected

The Korea Housing Finance Corporation announced on the 22nd that it will improve the joint guarantee exemption system for construction companies using business guarantees, starting with guarantee applications submitted from this date.

Previously, even after obtaining a certificate of use, construction companies were required to obtain the consent of all relevant parties, such as the project developer, in order to be exempted from joint guarantees. This process often caused procedural delays, resulting in increased financial burdens and limitations on securing new contracts.

Reflecting feedback from the field, the corporation has improved the system so that joint guarantees for construction companies are immediately exempted for business sites where the certificate of use has been completed. However, this measure applies only to new guarantees, and existing guarantee users will be encouraged to seek exemption through mutual agreement among the parties involved.

According to the corporation's internal analysis, this system improvement is expected to shorten the exemption period for joint guarantee obligations by approximately 190 days, and about KRW 2.5 trillion in annual contingent liabilities will be resolved earlier. As a result, the financial structure of construction companies is expected to improve, alongside an expansion in their capacity to secure new projects.

President Kim Kyunghwan stated, "This measure aims to improve the contracting environment for construction companies facing difficulties due to worsening external conditions and to support the smooth supply of housing," adding, "We will faithfully fulfill our role as a public guarantee institution by reflecting the voices from the field."

Korea Housing Finance Corporation.

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