Investment in kind is considered to stabilize real estate PF

In order to increase the equity capital ratio of real estate PF developers, the government has decided to induce landowners to invest in kind in land and buildings instead of purchasing land through high-interest loans.

In the case of investment in kind in PF projects, we decided to consider extending the deadline for taxing capital gains in consideration of the timing of profit realization.

The Ministry of Land, Infrastructure and Transport predicted that the equity capital ratio of project implementers will be raised to 20-40% and that they will not have to take out bridge loans, thereby reducing project costs and enhancing business stability.

In addition, if developers secure a high equity capital ratio, they will push for incentives such as floor space ratio and easing public contributions.

In addition to discounting PF guarantee fees for workplaces with high equity capital ratios and low guarantee risks, it will also come up with measures to expand financial companies' participation in PF to revitalize the long-term rental housing business.