HF Guarantee Support for Officetels and Commercial Buildings if Residential Portion Exceeds 70%

Korea Housing Finance Corporation Revises Construction Act Enforcement Decree... Effective from Today

From now on, it will be easier to obtain guarantees for construction costs when the residential portion accounts for 70% or more of the total building area in officetels and commercial buildings.

The Korea Housing Finance Corporation (HF) announced on the 12th that it will expand the scope of business guarantee support through amendments to the Enforcement Decree of the Construction Business Act. This revision aims to assist housing developers facing difficulties due to the slowdown in the construction market to smoothly carry out their projects.

Previously, when housing developers used HF's business guarantees, only the construction costs related to residential units were supported, and construction costs for non-residential parts such as officetels and commercial buildings had to be financed separately through loans or other means.

However, going forward, if the residential portion accounts for 70% or more of the total building area, the entire construction cost, including non-residential parts such as officetels and commercial buildings, will be eligible for guarantee support.

An HF official stated, “With this system improvement, housing developers will be able to smoothly secure the necessary funds through construction guarantees,” and added, “The corporation will continue to actively work to stabilize the real estate project financing (PF) market to promote housing supply.”

Meanwhile, this measure will apply to guarantee applications submitted from the 12th onward.