Seoul City-SGI Seoul Guarantee Launch Loan Product Supporting Reconstruction Safety Inspection Costs

Seoul Metropolitan Government and SGI Seoul Guarantee announced on the 12th that they will launch a loan insurance product starting from the 15th to support the costs of reconstruction safety inspections in Seoul.

The newly prepared loan insurance product was established following the revision of the “Seoul Metropolitan City Urban and Residential Environment Maintenance Ordinance” in March this year, aimed at supporting loans for reconstruction safety inspection costs for residents facing difficulties in raising initial costs for reconstruction projects.

The loan support targets reconstruction complexes requesting safety inspections that meet the aging criteria under the Urban Maintenance Act. If more than half of the landowners agree and request cost support from the autonomous district, and the district decides on loan support after review, the resident representatives can apply to SGI Seoul Guarantee for guarantee insurance subscription for reconstruction safety inspection cost loans. The loan limit can be decided by the district mayor within 100% of the reconstruction safety inspection costs. Resident representatives are composed of a minimum of one and a maximum of ten members.

Resident representatives who receive a guarantee certificate through SGI Seoul Guarantee enter into an agreement with the district mayor regarding support for reconstruction safety inspection costs. The district mayor regards the costs necessary for the safety inspection as a loan to the resident representatives and proceeds with the inspection. The loan product name of SGI Seoul Guarantee is “Personal Finance Guarantee Insurance.” The loan limit is operated up to a maximum of 50 million KRW per person, and a prescribed insurance premium applies. Insurance contracts and guarantee certificate issuance are available by visiting any of the 72 branches nationwide (20 branches in Seoul) or online. However, insurance contracts may be restricted if internal standards of the guarantee insurance company are not met.

As of September 2023, the autonomous districts eligible for loans are eight districts: Gangseo, Guro, Nowon, Dobong, Seocho, Seongdong, Yangcheon, and Yeongdeungpo. A budget of 3.23 billion KRW has been prepared through supplementary budgets to support loans for 22 complexes whose safety inspection period has arrived. Seven districts?Gangdong, Gangbuk, Geumcheon, Dongjak, Seodaemun, Eunpyeong, and Jung-gu?plan to support loans from next year based on demand surveys.

Meanwhile, following the government's relaxation of reconstruction safety inspection standards earlier this year, a total of 165 complexes (180,000 households) are pursuing safety inspections in Seoul alone. With 96 complexes having completed on-site investigations, it is expected that loan support for reconstruction safety inspections will continue to increase.

The city plans to actively provide administrative support through the “Fast-Track Integrated Planning Advisory Project” method, which allows for faster progress than the existing New Integrated Planning, for 55 complexes that have been judged for reconstruction in the safety inspections, if residents so desire.

Han Byung-yong, Director of the Seoul Housing Policy Office, said, “With the linkage of public support projects such as reconstruction safety inspection cost support and the Fast-Track Integrated Planning, the speed of maintenance projects will accelerate further. We will continue to consider various support measures to minimize difficulties in promoting maintenance projects and enable swift progress.”