Kookmin Bank seeks to form 1 tln won fund for builders

SEOUL, Sept. 23 (Yonhap) -- Kookmin Bank, South Korea's top lender, is seeking to
form a 1 trillion-won (US$868 million) fund to help local builders who are facing
cash shortages, bank officials said Tuesday.
According to the officials, the lender will chip in up to 500 billion won for the
fund, with the remaining amount to be contributed by state-run pension funds and
other commercial lenders.
The fund will extend loans to local builders, many of whom are suffering a credit
crunch due to unsold new apartments and tightened loan regulations.
The number of new apartments that failed to find owners stood at 147,000 at the
end of June this year amid concerns that the government's toughened property
regulations might weigh on housing prices.
Expecting home prices to go down, consumers delayed their purchases while
builders hastened to put new homes on the market to avoid the regulations.