HUG Designated as Exclusive Bank for Urban Housing Special Guarantee... "Expecting Activation of Purchase Rental"

The Housing and Urban Guarantee Corporation (HUG) announced on the 30th that it has designated Woori Bank and NongHyup Bank as dedicated banks for the 'Urban Housing Special Guarantee' and will operate accordingly.

Photo by Housing and Urban Guarantee Corporation

As a follow-up measure to the 'Plan to Expand Housing Supply for National Housing Stability' announced by the government last month, this allows new purchase rental housing suppliers to receive low-interest project funding to carry out their projects.

With the designation of dedicated banks, project operators who have signed purchase agreements with Korea Land and Housing Corporation (LH) or Gyeonggi Housing and Land Corporation (GH) can immediately consult for loans without having to look for separate lending banks.

Meanwhile, last month HUG abolished the differentiated guarantee limits by exclusive area for the Urban Housing Special Guarantee. Regardless of exclusive area, the limit was raised to within 90% of the total project cost in the metropolitan area and within 80% elsewhere.

Yoo Byung-tae, President of HUG, said, "We expect the new purchase rental housing business to become more active through the designation of dedicated banks," adding, "Going forward, the corporation will actively support new purchase rental housing projects and take the lead in strengthening the supply base."