HDC Hyundai Development Company Receives Residential Support Measures Worth 263 Billion KRW

HDC Hyundai Development Company announced on the 23rd that it has started accepting preliminary intention letters following the announcement of a comprehensive housing support plan for contract customers of Gwangju Hwajeong I-Park, valued at 263 billion KRW, on the 11th.

The acceptance of preliminary intention letters is a preliminary procedure for the main application scheduled in September. HDC Hyundai Development Company plans to explain the detailed aspects of the comprehensive housing support plan announced on the 11th to each contract customer of Hwajeong I-Park and guide them on the necessary documents for the main application in September. This acceptance period runs from August 23 to September 7.

While accepting the preliminary intention letters, HDC Hyundai Development Company provided detailed plans to implement subrogation repayment of interim payment loans received by contract customers equivalent to refunds, following the decision to demolish and reconstruct all buildings. The company will also bear all interest incurred. Accordingly, the payment schedule for Hwajeong I-Park contract customers will change from the usual 10% deposit, 60% interim payment, and 30% balance at move-in to a system where customers pay only the 10% deposit initially and then pay the remaining 90% balance at move-in without interim payments or interest burden during the rebuilding period.

HDC Hyundai Development Company has prepared a comprehensive housing support plan worth a total of 263 billion KRW to help contract customers recover their DSR (Debt Service Ratio) and to support stable residence until moving in after the Hwajeong I-Park rebuilding. The total support amount of 263 billion KRW consists of 163 billion KRW for subrogation repayment of interim payments and 100 billion KRW for housing support funds to secure jeonse (long-term lease) funds.

In particular, to restore contract customers’ DSR and enable additional loans, the company is promoting subrogation repayment of interim payments worth 163 billion KRW. Taking responsibility for the accident, HDC Hyundai Development Company will also bear the interim payment interest that contract customers would have to pay and handle the repayment.

An HDC Hyundai Development Company official emphasized, "This is equivalent to refunding the interim payments, so there will be no debt relationship or interest between contract customers and HDC Hyundai Development Company, contrary to some concerns."

Accordingly, contract customers who paid interim payments without loans will also be refunded the full amount of interim payments paid, including period interest. For an 84㎡ unit, this means maintaining the sales contract with only an average deposit payment of about 55 million KRW.

Additionally, the 100 billion KRW housing support fund prepared by HDC Hyundai Development Company can be used interest-free until move-in, and the company plans to bear all financial costs incurred while contract customers use the funds. For an 84㎡ unit, this support amounts to about 110 million KRW. If contract customers do not take out a housing support loan, they will receive a discount on the sale price equivalent to the amount of interest calculated at an annual rate of 7% until move-in (about 39 million KRW by move-in).

Furthermore, HDC Hyundai Development Company will apply a late penalty rate to contract customers’ payments and provide a discount on the sale price corresponding to the delay period. This results in a discount benefit of about 18 million KRW for an 84㎡ unit.

HDC Hyundai Development Company plans to continue efforts for prompt accident recovery and damage support in cooperation with the Seo-gu Office of Gwangju City and other related organizations. The company stated, "To ensure that all support measures are completed before the interim payment loan maturity in February next year, we will establish related systems through collaboration with relevant agencies, accept related documents around September, and execute housing support fund disbursement and interim payment loan repayment starting in October."

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