Seoul City to Provide 12 Billion KRW Interest-Free Loans for Building Energy Efficiency This Year

Applications Open Starting from the 16th

[Asia Economy Reporter Kiho Sung] Amid rising energy costs for citizens due to announced increases in electricity and gas rates this year, the Seoul Metropolitan Government announced on the 12th that it will start the '2023 Building Energy Efficiency (BRP) Loan Support Project' from the 16th to improve the energy efficiency of aging buildings and reduce greenhouse gas emissions from buildings.

The Building Energy Efficiency Project, implemented since 2008, aims to reduce energy consumption by improving inefficient factors in buildings and enhancing usage efficiency through the replacement of high-efficiency materials such as windows, boilers, and lighting.

Considering the strong public response last year, which led to an increase in the project budget from the initial 3.5 billion KRW to 10.9 billion KRW, this year’s support scale has been expanded to 12 billion KRW. Eligible targets are aging houses or buildings that have been approved for use for over 10 years. When carrying out energy efficiency improvement works such as installing insulated windows, insulation materials, or high-efficiency LED lighting, buildings can receive loans up to 2 billion KRW, and houses up to 60 million KRW. The loan principal must be repaid in equal installments within 8 years. Applications submitted through the Building Energy Efficiency (BRP) support system will be reviewed by the Seoul City Loan Review Committee for suitability and feasibility, and after construction is completed, construction costs can be supported through loan procedures at the contracted financial institution.

This year, the scope of loan support has been expanded to include high airtightness insulated doors, and the support procedures have been simplified to improve the project. For entrance doors, since insulation design standards have been applied since 2001, old doors installed before then with poor insulation performance will also be eligible for support if replaced with high airtightness insulated doors (compliant with KS F 2297 standards).

The service subscription process has also been simplified. Previously, applicants had to mandatorily join the Seoul Eco Mileage program before applying through the Seoul Building Energy Efficiency support system, which was cumbersome. Going forward, applicants can apply immediately after registering as a member of the Seoul Building Energy Efficiency support system.

However, to ensure appropriate loan support and the adequacy of construction details, support will only be provided for insulated windows labeled with energy consumption efficiency grades 1 to 3, and an on-site inspection step will be added before issuing loan recommendation letters.

Detailed information related to loan support can be found in the notices section of the Seoul Building Energy Efficiency Project support system or in the announcements section on the Seoul city website. For other inquiries, contact the Seoul Low Carbon Building Support Center.

The city will hold an explanatory session on February 6 for building and house owners, construction companies, and others interested in the Building Energy Efficiency Project. The session will introduce Seoul’s policies related to building energy performance improvement and provide guidance on the contents and procedures of this year’s updated Building Energy Efficiency support project.

Lee In-geun, Head of the Seoul Climate and Environment Headquarters, stated, “The Seoul Building Energy Efficiency Project has a ‘triple-win’ effect by reducing greenhouse gases from buildings, saving heating and electricity costs, and improving housing environments, thereby reducing the burden on citizens. We will continue to strive to expand low-carbon buildings through policies that minimize citizen burdens. We ask for the active interest and participation of all citizens.”

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