From now on heavy assessment of fees and other charges on project financing provided by financial institutions based on the credit ratings of the builders will be removed. Also removed will be various unfair practices done by the financial institutions and the construction companies will be made to pay back their loans after the construction projects are completed to allow the builders to secure enough funds for their construction projects.
Also, the payments for services rendered by the subcontractors will be made easier with all the payments to be made on time with every payment to be made so that all the subcontractor would get the payments for the services they provided.
Korea Housing Guaranty Co. announced its 2014 management plan and the performance results of 2013 at news conference held on March 18 with some 50 of its key officials attending.
President Kim Sun-kyu, at the event, said the company plans to issue 70 trillion won worth of guarantees for new houses, up 5 trillion won from last year at 70 trillion won with a large increase coming in the area of new housing guarantees. Tight management, the expansion in public activities, the search for new growth engines, providing the services that can move the people, and building of a smart management system make up the five key areas of the company’s management plan. The company will also expand its role in stabilization of the house leasing market and introduce a single residential house commodity as part of its core objectives in its management this year.
President Kim also said he will try to improve the company’s management to win the public trust by checking and reforming its management based on the government’s moves to normalize the state-owned companies.
With regard to the company’s management results last year, Kim said the company issued 65 trillion won worth of housing guaranties, up 23 percent from the preceding year with a net profit of 199.2 billion won to secure stability in the company’s operation with the debt ratio falling 2.7 percent to 18.1 percent.
KHGC has also introduced eight new guarantee products in 2013, the same number that were introduced in the preceding year, adding that the company will focus on the benefits to the people first when developing new housing guarantee products, taking into consideration whether they are needed in the housing market or not and second, the company will also see who would benefit and third, risk analysis of the new products.
The company will expand its public role as initially given when the company was launched in close consultation with the government. Its been handling the housing guarantee products tied to the government real estate policies.
Within the case of constructing housings after receiving ‘housing construction plan approval, this guarantee system is responsible for refund of deposit and advanced payment (2/3 of the tenants should agree) when the contract cannot be discharged (including official inspection and registration of ownership retention) due to bankruptcy. Guarantee for Housing Completion is based on the clause 8 of regulations in relation to housing supply and this is to be presented to the competent markets when tenants’ application is made. The sum of security deposit and advanced payment received from the landlords will be guaranteed from tenants’ application date until the registration date of ownership preservation including official inspection dates.
Out of residential and commercial complex buildings which receive construction permits and residential and commercial complex buildings which receive business plan approvals, when a sales contract cannot be discharged for other facilities excluding the residential parts (studio apartments and commercial facilities) due to bankruptcy, this guarantee is responsible for discharging the contract or refunding the security deposit as well as advanced payments (should be agreed to by 2/3 of tenants. In the case of constructing housings after receiving a housing construction plan approval, this guarantee system is responsible for a refund of deposits and advanced payments (2/3 of the tenants should agree) when the contract cannot be discharged (including official inspection and registration of ownership retention) due to bankruptcy.
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