South Korean financial authorities are creating a 3 trillion won ($2.2 billion) fund to restart distressed real estate project financing (PF) sites that have permits but stalled because of funding shortages. The fund will combine 1.5 trillion won each in public and private capital, with 60% directed primarily to residential projects. The Financial Services Commission estimates the program could support approximately 18,000 housing and quasi-housing units. The expansion follows the KAMCO PF normalization support fund, established in September 2023 with 1.1 trillion won. It had invested 819.3 billion won as of this month, including 373 billion won in residential sites that supported about 3,881 units. A representative project in Mapo District was restructured after a 60.5 billion won KAMCO Fund investment, allowing senior PF financing, construction and the sale of all 178 units. Authorities plan to announce a call for new asset managers next month, complete selection by December and establish the new fund by the first half of next year.