SH Corporation to National Audit Office: "Land Lease Type Should Apply 'Nanum-type Mortgage Loan'"

Land Lease Housing and Nanum-type Housing Policies Excluded from Loan Targets
Nanum-type Mortgage Offers Low-interest Loans up to 5 Billion KRW with 40-year Terms
SH Corporation "Loan Support Needed Ahead of Main Subscription in Second Half of Next Year"

Seoul Housing and Communities Corporation (SH Corporation) has officially requested cooperation from the Office for Government Policy Coordination to include land leasehold sale housing (Baeknyeon Housing) in the target for the Nanum-type exclusive mortgage loan support.

On the 7th, SH Corporation announced that it sent an additional official letter to the Office for Government Policy Coordination on the 5th, requesting cooperation to apply the 'Nanum-type exclusive mortgage loan' to land leasehold sale housing, which is part of the New:Home Nanum-type housing. Earlier, SH Corporation had requested cooperation on the same matter from the Ministry of Land, Infrastructure and Transport in March.

On October 26, 2022, the government announced the plan to "expand opportunities for youth and low-income households to own homes and supply 500,000 public sale units," including support for Nanum-type housing exclusive mortgages. The Nanum-type offers loans with a maximum limit of 500 million KRW (LTV up to 80%, DSR not applied), a 40-year term, and low fixed interest rates (1.9~3.0%). This measure aims to reduce the initial lump-sum burden and interest rate burden for youth and others with insufficient income and assets.

So far, SH Corporation has been negotiating with related agencies for exclusive long-term mortgage loans for land leasehold sale housing, but specific details have not been finalized. They have requested cooperation to promptly establish exclusive loan products for land leasehold sale housing.

Starting with the first pre-reservation on December 2022 (Godeok Gangil 3), SH Corporation has supplied a total of 1,623 units of land leasehold sale housing over four rounds and plans additional supply. SH Corporation is concerned that if long-term low-interest mortgage products are not introduced before the main subscription, buyers will have to take out loans from private financial institutions with high interest rates, causing difficulties in securing funds.

SH Corporation plans to continue requesting the Ministry of Land, Infrastructure and Transport, the National Assembly, and others to promptly prepare measures to apply exclusive loan products for building sale Baeknyeon Housing.

Kim Heon-dong, President of SH Corporation, emphasized, "Land leasehold sale housing is the most suitable housing for residential stability for newlyweds and youth due to its low sale price," adding, "As Nanum-type housing supplied under the Yoon Seok-yeol administration's New:Home policy, government long-term mortgage loans must naturally be provided in line with the housing policy announced in 2022."

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