Housing guarantee fund needs 2 trillion won

The Ministry of Construction and Transportation has taken action to rescue the Korea Housing Guarantee Co. Ltd., which nearly has depleted all its capital fund to provide such guarantee, through various means including a request for 2 trillion won of public fund for injection into the company.

The ministry noted that the disclosures of the listing of companies to be shut down includes many construction companies, such as Dong Ah Construction has, leading to taxing the of KHGC to its fullest. Considering the public good and the possible devastating repercussion, the MOCT has decided to seek 2 trillion won of public fund for injection and will meet with the related departments such as the Ministry of Finance and Economy on Monday.

The MOCT further revealed that should the public fund request, which requires a vote by the National Assembly, be turned down, it would seek appropriation of the needed 2 trillion won from the National Housing Funds. KHGC has disclosed that the mid-year audit of its capital fund revealed a sharp drop from end of last year's 720 billion won to current 240 billion won and that the limit on the new guarantees that could be issued, set at 70 times the capital reserve, has decreased from 50 trillion won to 18 trillion won.