Seoul City Provides 16 Billion Won Support to Resolve Early Funding Difficulties in Redevelopment
[Asia Economy Reporter Onyu Lim] The Seoul Metropolitan Government announced on the 24th that it will provide a total of 16 billion KRW in redevelopment project loans this year to alleviate early-stage financial difficulties and revitalize projects for redevelopment promotion committees and associations.
The redevelopment project loans have been implemented since 2008 as a form of public support for redevelopment projects, with approximately 238 billion KRW provided up to last year.
The support targets are housing maintenance-type and urban maintenance-type redevelopment, reconstruction associations, and promotion committees. Applications can be made if requirements such as designation of redevelopment zones, approval of loan borrowing at general meetings, repayment, and amendments to articles of association regarding debt succession are met. Based on building gross floor area, associations can receive up to 6 billion KRW, and promotion committees up to 1.5 billion KRW. The loan interest rates are 3.5% per annum for unsecured loans and 2.0% per annum for secured loans.
Seoul City will review the progress and execution plans for each zone in May to determine the loan support targets and amounts, and provide support through the Housing and Urban Guarantee Corporation, the entrusted loan management institution.
Associations or promotion committees wishing to receive loan support should submit their application forms and required documents to the redevelopment project department of the relevant autonomous district office between April 21 and 28.
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Lee Jin-hyung, Director of Housing Planning at Seoul City, said, “We hope that associations or promotion committees struggling with early-stage financial difficulties can resolve their funding issues through loan support and smoothly proceed with redevelopment projects,” adding, “We expect transparent and fair redevelopment project promotion through Seoul City’s support.”
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