Kwon Hyung-taek: "HUG Will Actively Support Private-Led Housing Supply"

Kwon Hyung-taek, President of Housing and Urban Guarantee Corporation (HUG)

[Asia Economy Reporter Ryu Tae-min] The Housing and Urban Guarantee Corporation (HUG) announced on the 15th that it plans to actively support the revitalization of private-led housing supply this year through housing sale guarantees and credit extensions.

Through the provision of redevelopment project fund loan guarantees last year, HUG supported redevelopment project funds for about 30,000 households amounting to 10.8699 trillion won. This has exceeded 10 trillion won for four consecutive years since 2018. In particular, this year, with the expected revitalization of housing supply through redevelopment and reconstruction, demand for redevelopment project fund loan guarantees is expected to surge. HUG has secured 7.2276 trillion won in available funds for this purpose. Additionally, in January, HUG signed an agreement with IBK Industrial Bank allowing operators of street housing redevelopment projects to receive loans up to 50% of the project cost by obtaining HUG guarantees.

HUG also plans to actively operate a housing sale guarantee system that meets market demands this year. Various customized guarantee products for housing developers will be managed. Furthermore, it has been reported that HUG is preparing related tasks by taking over the role of asset management company (AMC) of the parent REIT in the parent-child REIT structure of public-supported private rental housing from the Korea Land and Housing Corporation (LH).

However, some point out that HUG is experiencing a worsening manpower shortage due to the diversification of its tasks and the rapidly increasing demand for guarantees from individuals. There are concerns that improvements to guarantee systems related to housing supply that meet market demands and support for housing developers may not be provided in a timely manner. HUG has already recommended the need for organizational and personnel expansion to the relevant authorities. Kwon Hyung-taek, President of HUG, stated, “We will continue to focus our capabilities on improving guarantee systems and managing products that meet market expectations so that private-led housing supply can proceed smoothly.”

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