HUG Reappointed as Standard PF Lead Financial Institution Alongside Kookmin and Woori Banks

[Asia Economy Reporter Ryu Taemin] The Korea Housing & Urban Guarantee Corporation (HUG) announced on the 4th that it has newly selected lead financial institutions for the standard project financing (PF) and post-sale standard PF guarantees that support smooth financing for housing developers.

PF guarantees refer to guarantees that take responsibility for the principal and interest repayment of housing project financing loans, such as land costs, which housing developers borrow secured by future cash inflows and feasibility of housing construction projects. Post-sale PF guarantees refer to guarantees responsible for principal and interest repayment when housing developers raise construction funds under the condition of selling part of the housing after completion.

Since implementing the system in 2014, HUG has supported approximately 12.6 trillion KRW in standard PF guarantees and about 860 billion KRW in post-sale standard PF guarantees.

The newly selected lead financial institutions for standard PF are Kookmin Bank, Busan Bank, Suhyup Bank, Woori Bank, and Hana Bank. For post-sale standard PF, the institutions are Busan Bank, Woori Bank, and Suhyup Bank.

Kwon Hyung-taek, President of HUG, stated, “We consider it meaningful that we can reduce costs for housing developers facing difficulties due to recent sharp rises in raw material prices and loan interest rate hikes by providing low-interest financial support,” and added, “Through the operation of the standard PF and post-sale standard PF systems, we expect significant help in stabilizing the real estate market and supporting housing stability by expanding housing supply.”

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