Shinhan Credit Guarantee Fund and Seoul City Sign 'Social Housing Safety Guarantee Promotion Business Agreement'

Support for Social Housing Projects through Policy Financial Institutions-Local Governments-Private Sector Cooperation

[Asia Economy Reporter Park Sun-mi]Shinhan Credit Guarantee Fund announced on the 11th that it has signed the ‘Seoul Social Housing Safety Guarantee Promotion Business Agreement’ with Seoul Metropolitan Government, Korea Social Housing Association, and Korea Social Value Solidarity Fund.

Shinhan Credit Guarantee Fund’s ‘Social Housing Safety Guarantee’ is a product that guarantees the debt of the contract between the business operator and the Social Housing Association for the return of tenant deposits, targeting social housing operators (social economy enterprises) selected by the Seoul Metropolitan Government. Even for subleased social housing, deposit return guarantees are possible. Through this product, tenants can move into social housing without concerns about deposit non-return, and operators can recruit tenants stably.

Shinhan Credit Guarantee Fund offers preferential guarantee fees (a fixed guarantee fee rate of 0.5%) to eligible companies, and Seoul Metropolitan Government fully supports the guarantee fee for the first year, allowing social housing operators to use the guarantee without bearing the fee burden. This agreement was established to support the stable expansion of social housing by protecting tenants and fostering operators through a cooperative model among policy financial institutions, local governments, and the private sector.

Social housing refers to private rental housing supplied by social economy enterprises targeting socially vulnerable groups. It allows long-term residence at rent lower than market prices, emerging as an alternative to resolve housing problems caused by the ongoing jeonse and monthly rent crisis. However, until now, Seoul’s social housing support projects have remodeled facilities such as goshiwons and vacant houses for re-rental, making it difficult to subscribe to deposit return guarantee insurance for tenants.

A Shinhan Credit Guarantee Fund official said, “This agreement is expected to promote the entry of social economy enterprises into the social housing market and contribute to resolving the deepening housing problems.”