'Housing Purchase Loan Guarantees Available at Local Nonghyup, Suhyup, and Shinhyup'

Kang Sin-suk, Deputy Head of the Cooperative Economy Department at the National Federation of Fisheries Cooperatives; Lee Jae-sik, CEO of Mutual Finance at the National Agricultural Cooperative Federation; Kwon Hyung-taek, President of HUG; and Park Young-beom, Managing Director of the National Credit Union Federation of Korea (from left), are taking a commemorative photo after signing a mutual cooperation agreement on the 16th at the National Agricultural Cooperative Federation in Seoul. (Photo by HUG)

[Asia Economy Reporter Moon Jiwon] The Housing and Urban Guarantee Corporation (HUG) announced on the 16th that it has signed an agreement for mutual cooperation with Nonghyup regional cooperatives, Suhyup district cooperatives, and credit cooperatives to enhance the convenience of its housing purchase fund guarantee service and housing lease fund guarantee service.

The housing purchase fund guarantee is a guarantee product that takes responsibility for the repayment of the interim payment loan borrowed by the sales contract holder from a financial institution, and the housing lease fund guarantee is a guarantee product that takes responsibility for the repayment of the lease deposit loan borrowed by the tenant of rental housing from a financial institution.

Previously, the housing purchase (lease) fund guarantee was only available through first-tier financial institutions such as commercial banks and insurance companies, causing inconvenience for customers in areas with low accessibility to financial institutions, such as rural and fishing villages.

With the signing of this mutual cooperation agreement, the entrusted institutions for guarantee services will expand to include regional Nonghyup, Suhyup, and credit cooperatives, allowing customers to use loans and guarantees at these institutions in one place, thereby improving the convenience of using guarantees.

Kwon Hyung-taek, President of HUG, said, "We have expanded the guarantee handling institutions so that customers in regions previously excluded from financial support can conveniently use guarantee products," adding, "HUG will continue to strive to improve the system of guarantee products for the housing stability of ordinary citizens."