Follow-up Measures by the Ministry of Land, Infrastructure and Transport for Expanding Housing Supply
The Ministry of Land, Infrastructure and Transport announced on the 10th that it will provide loans of up to 5 billion KRW in initial funds to maintenance project associations preparing for business implementation plan approval, to be used for services and other expenses.
Earlier, following last year's measures to expand housing supply, a budget of 40 billion KRW was newly established this year in the Housing and Urban Fund. It can be used for service fees, association operating expenses, repayment of existing loans, and similar purposes. Interest rates will be applied differentially depending on the location or type of the project site, and interest may be paid in a lump sum on the maturity date.
The maturity period can be up to 5 years, within 1 year after receiving business implementation plan approval. The loan amount is calculated based on the total building floor area. For areas outside Seoul, redevelopment is 2.2% per annum, and reconstruction is 2.6%. In Seoul, excluding regulated areas, redevelopment is 2.6% per annum, and reconstruction is 3.0%. A guarantee fee, up to about 1%, is charged separately.
When an association applies, the government reviews the project's public interest and stability and lends the requested amount within the limit. The principle is to prioritize support for projects with excellent public interest and high resident consent rates.
From the 11th, the Ministry of Land, Infrastructure and Transport will hold resident briefings by visiting five regions directly. Information on the initial fund loan product as well as changes in maintenance project policies this year can be obtained. Park Yong-seon, head of the Housing Maintenance Division at the Ministry, said, "We hope associations facing difficulties in financing at the early stages of the project actively utilize this financial support to accelerate progress and reduce financial costs."
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