The Introduction of Real Estate Financing developed well in the Domestic market with the Government's financial market Opening in the process of overcoming the IMF crisis in 1997.
However, the Real Estate development credit uses a bank as a safety device, like a construction company or sponsors's guarantee instead of project financing based on its feasability.
Moreover, it faces a double taxation issue with the corporation tax for both SPCs(Special Purpose Company) related to ABS and Real Estate development.
The double taxation issue's problem was solved by the corporation's revision, which allowed SPC to be a kind of conduit.
In addition, on the condition that SPC meets the proper requirements, it could be exempted from the corporation tax and receive an acquisition-registration tax cut.
It is called PFV, it is Real Estate SPC solving the double taxation issue.
It became generally known that PFV is helpful to improve a partial project's possibility, although there is a gap among businesses.
Recently, PFV came into the spotlight because it can develop profit and improve policy structure, which is getting progressively worse by the government's successive regulation policy.
It is expected to occupy a considerable part in the Real Estate market later, though it is not very common yet due to a severe establishment requisite.
This thesis is focusing on unsolved problems, improvement plans and presents a practical-based theory on the effect of applying PFV to housing development.