IBK Industrial Bank - Housing and Urban Guarantee Corporation, Financial Support Agreement for Row House Maintenance Project

The photo shows Yoon Jong-won, President of Industrial Bank of Korea (right), and Kwon Hyung-taek, President of Korea Housing & Urban Guarantee Corporation (left), posing for a photo after the signing ceremony held on the 20th at the Industrial Bank of Korea headquarters in Euljiro, Seoul. Photo by [Photographer's Name]

[Asia Economy Reporter Park Sun-mi]IBK Industrial Bank announced on the 20th that it signed a business agreement with the Korea Housing & Urban Guarantee Corporation at the IBK headquarters in Euljiro, Seoul, to activate financial support for the Garo Housing Maintenance Project.

The Garo Housing Maintenance Project is a small-scale maintenance project carried out in street blocks smaller than 10,000㎡ where old and deteriorated buildings are densely concentrated. Due to lower profitability compared to general redevelopment and reconstruction projects, it has been difficult to raise funds through private financing, so project funds have mainly been procured through the Housing and Urban Fund.

Under this agreement, IBK will provide loans at a low interest rate of 3-month CD rate + 1.50 percentage points up to 50% of the project cost to companies that receive a guarantee certificate through the Korea Housing & Urban Guarantee Corporation. Since project implementers can selectively utilize funding methods, it is expected that the activation of the Garo Housing Maintenance Project will gain more momentum in the future.

In addition, the two institutions will cooperate to activate the Garo Housing Maintenance Project by ▲ supporting project cost loan guarantees and providing related information ▲ improving systems related to the Garo Housing Maintenance Project and conducting publicity and marketing activities.

Yoon Jong-won, President of IBK, said, “The Garo Housing Maintenance Project has had low participation from private resources and high interest rates, making it difficult for small-scale project operators to raise funds,” adding, “Through this agreement, we hope IBK’s timely support of project costs at low interest rates will help resolve the financial difficulties of Garo Housing Maintenance Project operators.”

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