Busan City, Korea Housing Finance Corporation, and Financial Institutions Sign MOU for Hope Deoham Housing Construction Fund Support

2pm on the 1st at City Hall, City-Gongsa-Korea Development Bank-Hana-Woori-Shinhan-Kookmin-Busan Bank to participate

Expansion of youth rental housing supply, long-term real estate market downturn and revitalization of local construction industry expected

On the afternoon of the 1st, at 2 PM, the city of Busan will sign a business agreement on 'Financial Support for Hope Deoham Housing Construction Funds' together with financial institutions such as Korea Housing Finance Corporation at the International Protocol Room of City Hall.

Busan City Hall.

The participating institutions in the agreement include the city, Korea Housing Finance Corporation (HF), Korea Development Bank, Hana Bank, Woori Bank, Shinhan Bank, KB Kookmin Bank, and Busan Bank.

At the signing ceremony, Mayor Park Hyungjun, Choi Junwoo, President of Korea Housing Finance Corporation, Kang Seokhoon, Chairman of Korea Development Bank, Lee Seungyeol, President of Hana Bank, and other representatives of the participating institutions will attend in person to sign the agreement.

'Hope Deoham Housing' is Mayor Park Hyungjun's flagship youth housing policy, which supplies rental housing at prices lower than the market rate in prime locations near subway stations. With specialized community facilities and convenient transportation for young people, demand among young tenants is high.

As the downturn in the construction industry continued in the second half of last year, the city determined that it was urgent to prepare support measures to both expand the supply of youth rental housing and revitalize the local construction economy. As a result, financial support measures such as interest support for Hope Deoham Housing construction funds were established.

This policy direction gained momentum as six banks, including Korea Housing Finance Corporation, Korea Development Bank, and Hana Bank, decided to participate.

As of the end of July this year, there are a total of 14 Hope Deoham Housing sites with 4,241 units.

Once the agreement is signed, the city will provide partial annual interest support (up to 2%) on Hope Deoham Housing construction funds (up to 12 billion KRW); Korea Housing Finance Corporation will guarantee 100% of Hope Deoham Housing construction fund loans; and the banks will support lending for Hope Deoham Housing construction funds.

Immediately after the agreement is signed, the city will convene a working-level meeting to accelerate the progress of the project.

Since most of the project operators for Hope Deoham Housing are construction companies in the Busan area, the city expects that this agreement will enable proactive and active support for Busan's housing construction industry, which has been experiencing a prolonged slump.

In addition, along with this financial support, the city plans to expand the target areas for the project, such as cityscape districts, and prepare follow-up administrative support for the expansion of Hope Deoham Housing supply, such as easing the ratio of rental housing construction through revisions to detailed operational standards.

Mayor Park Hyungjun stated, "Through this agreement, we will do our best to ensure the stable supply of youth rental housing and support the construction industry in Busan. The fact that the heads of various financial institutions have come together with a shared purpose gives this agreement great significance. We will continue to strengthen our cooperation system with financial institutions in various fields so that Busan becomes a city where anyone can enjoy a good quality of life."

Key Points of the Business Agreement.

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