Seoul City to Provide 16 Billion Won Loan Support for Initial Funding of Redevelopment and Other Maintenance Projects This Year

[Asia Economy Reporter Choi Dong-hyun] Seoul City announced on the 11th that it will provide 16 billion KRW in redevelopment project loans this year to help resolve early-stage funding difficulties and revitalize projects for redevelopment promotion committees and associations.

The redevelopment project loans have been implemented since 2008 as a form of public support for redevelopment projects, with a total of 220 billion KRW provided up to last year. Eligible recipients include housing maintenance-type and urban maintenance-type redevelopment and reconstruction associations and promotion committees. Applications can be made if requirements such as designation of redevelopment zones, approval of borrowing at general meetings, repayment, and amendments to articles of association regarding debt succession are met. Based on building gross floor area, associations can receive up to 6 billion KRW and promotion committees up to 1.5 billion KRW, with an annual interest rate of 3.5% for unsecured loans.

Seoul City will review the progress and execution plans for each zone in May to determine the recipients and loan amounts, and provide support through the Housing and Urban Guarantee Corporation (HUG), the entrusted loan management institution. Associations and promotion committees wishing to apply for loans should submit their application forms and required documents to the redevelopment project department of the relevant autonomous district office between April 22 and 29.

Kim Seong-bo, Director of Housing Planning at Seoul City, said, “We hope that associations or promotion committees experiencing early-stage funding difficulties can resolve their financial issues through loan support and smoothly proceed with redevelopment projects,” adding, “We expect transparent and fair redevelopment project promotion through Seoul City’s support.”