South Korea\'s Financial Supervisory Service will strengthen oversight and financial support for residential real estate project financing to bring forward housing supply in Seoul and the greater capital region. It will prioritise 325 projects, including residential sites in regulated capital-area districts scheduled for supply by 2027. The watchdog plans to expand dedicated staff, assign managers to each site and check progress. It will work with the transport ministry, LH and financial institutions to address delays and funding difficulties.

Mutual finance groups in South Korea are facing tighter rules on real estate project financing and broader asset-soundness requirements, forcing them to curb property-related lending and bolster capital. The financial authorities want the sector to strengthen its role in local and low-income finance, but the industry says stable earnings are needed to sustain such lending. It is calling for adjustments to household-loan regulations, particularly outside the capital region, to reflect differing regional conditions.