LH Signs Banking Agreement for Private Construction Housing Purchase Commitment Project

Business Agreement with Shinhan Bank and Woori Bank to Secure Stable Candidate Sites
Mutual Growth Possible Among LH, Banks, and Customers, Expansion of Agreements with Other Commercial Banks Within the Year

LH is taking steps to revitalize the purchase agreement method project through the 'Banking Sector Business Agreement for the Private Construction Housing Purchase Agreement Method.' On the 8th, attendees including Ahn Hyo-yeol, Vice President of Shinhan Bank (second from the left in the photo), Seo Chang-won, Head of LH Housing Welfare Headquarters (center in the photo), and Jeong Yeon-gi, Vice President of Woori Bank (fourth from the left in the photo), participated in the 'Financial Sector Business Agreement Signing Ceremony for the Activation of Private Construction Housing Pre-Purchase Agreements' and posed for a commemorative photo.

[Asia Economy Reporter Kangwook Cho] Korea Land and Housing Corporation (LH) announced on the 8th that it signed a business agreement with Shinhan Bank and Woori Bank at the LH Seoul Regional Headquarters located in Gangnam-gu, Seoul, to ensure the stable execution and activation of the ‘Private Construction Housing Purchase Agreement Method’ project.

The ‘Private Construction Housing Purchase Agreement Method’ is a project in which a private developer signs a purchase agreement for housing (multi-family or multi-unit) that is planned or under construction before completion, and after completion, LH purchases the housing to utilize it as rental housing.

Through the pre-purchase agreement, LH directly inspects key construction processes, which is expected to improve the overall housing quality. Private developers benefit from resolving risks related to unsold or unleased units and solving financing issues during construction.

To carry out the government’s jeonse (long-term lease) measures without delay, LH plans to purchase about 40,000 units of private construction housing this year. Accordingly, to secure high-quality rental housing candidate sites within urban areas by utilizing idle real estate owned by bank customers, LH signed this business agreement with the two banks.

According to the agreement, LH and each bank agreed to mutually cooperate in △ discovering landowners and developers for the purchase agreement project △ reviewing the feasibility of the purchase agreement project △ discovering real estate development-related projects and sharing information.

With this agreement, LH is expected to diversify channels for discovering public rental housing candidate sites, and the banks are expected to pioneer new business areas by developing customers’ idle real estate into rental housing through trust companies. Additionally, bank customers are expected to secure new investment opportunities by utilizing their owned land.

Starting with this agreement, LH plans to pursue business agreements within this year with other commercial banks that have trust companies within their holding groups.

Seochangwon, Head of LH Residential Welfare Headquarters, said, "This collaboration method with banks will become a new cooperation model in residential welfare that brings success to LH, banks, and customers alike," and added, "LH will further develop the ‘Private Construction Housing Purchase Agreement Method’ and do its best to ensure housing stability for low-income households without homes."

This content was produced with the assistance of AI translation services.