HUG Signs Group Mortgage Loan Agreement for Moving-in Expenses with Woori Bank

Policy Linkage for Garojutaek Redevelopment Project

The Housing and Urban Guarantee Corporation (HUG) announced on the 16th that it has signed a "Policy-Linked Group Loan Agreement for Relocation Expenses in Street Housing Redevelopment Projects" with Woori Bank.

This agreement was prepared to support the "improvement of business feasibility for small-scale redevelopment projects," which was included in the real estate supply measures announced by the government last September.

When the fund budget for relocation expense loans is exhausted, the association must raise funds through the private sector; however, due to the characteristics of small-scale street housing redevelopment projects, there have been difficulties in selecting financial institutions due to loan avoidance and other reasons.

Accordingly, HUG and Woori Bank plan to support a "policy-linked group loan product for relocation expenses" so that association members can secure relocation funds at low interest rates through this agreement.

Yoo Byung-tae, President of HUG, stated, "HUG is actively cooperating with Woori Bank to ensure smooth support for street housing redevelopment projects in accordance with the September 26 real estate measures, and we will continue to strive to support the stabilization of housing for ordinary citizens through revitalizing housing supply."

To receive the policy-linked group loan for relocation expenses, applicants must apply for relocation expense guarantee group handling together with construction funds (fund entrusted loans) through the HUG Housing and Urban Finance Center. After the guarantee screening is approved, loan applications, screening, and execution for individual association members will proceed at Woori Bank branches.

In April, HUG restructured the loan system to operate the limited fund budget efficiently by directing construction funds, which are part of the overall project costs, toward fund entrusted loans.

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