Seoul City Increases 'Maintenance Project Loan Fund' by About 50%... 23.9 Billion Won Support This Year

For Promotion Committees and Associations Designated as Maintenance Zones Prior to the Announcement Date

Apply to the relevant district maintenance project department from May 3 to 10

[Asia Economy Reporter Kim Min-young] The Seoul Metropolitan Government announced on the 31st that it will support maintenance project loans totaling 23.9 billion KRW this year.

Seoul City stated that it has allocated a budget of 23.9 billion KRW, an increase of 7.9 billion KRW (49%) compared to the previous year, to expand loan support for promotion committees and associations this year.

The city operates a loan support system using public funds to prevent the formation of collusive relationships that may arise when promotion committees and associations, which lack initial funds such as project costs, procure funds through constructors. Maintenance project loans have been implemented since 2008, and approximately 253 billion KRW has been supported until 2021.

The support targets are housing maintenance-type and urban maintenance-type redevelopment and reconstruction associations and promotion committees. Applicants must meet requirements such as designation of maintenance zones, resolution of fund borrowing at general meetings, and establishment or revision of articles of association regarding repayment and debt succession. The loan limit is up to 6 billion KRW for associations and up to 1.5 billion KRW for promotion committees based on total floor area, provided in stages. The loan interest rates are 3.5% per annum for unsecured loans and 2.0% per annum for secured loans.

Maintenance project loans have a 5-year maturity with lump-sum principal and interest repayment conditions. However, loans received by promotion committees can be extended annually until the selection of constructors, and loans received by associations can be extended annually until the application for completion approval.

The city will review the promotion status and execution plans by zone in June to determine the loan support targets and amounts, and support will be provided through loan screening conducted by the Housing and Urban Guarantee Corporation, the entrusted loan management institution.

Associations or promotion committees wishing to apply for loan support should submit the application form and required documents to the relevant district maintenance project department between May 3 and 10. Application forms and related documents will be posted on the 'Seoul Maintenance Project Information Mongttang' website.

Lee Jin-hyung, Director of Housing Supply Planning at Seoul City, said, "We expect that associations or promotion committees struggling with initial funding difficulties in maintenance projects will overcome their challenges through loan support and smoothly proceed with maintenance projects." He added, "Going forward, Seoul City plans to continuously strengthen public support such as loan assistance to revitalize maintenance projects."

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