Green Remodeling Program Resumes... Non-Residential Support Ceiling Raised from 5 Billion to 20 Billion Won

The Ministry of Land, Infrastructure and Transport announced on March 16 that it will resume the 'Private Building Green Remodeling Interest Support Program' (hereinafter referred to as the Interest Support Program) to help improve the energy performance of existing buildings.

Green Remodeling (GR) refers to measures that enhance the energy performance and efficiency of existing buildings through upgrades such as improved insulation, replacement of windows, and replacement of outdated facilities. The government launched the Interest Support Program in 2014, which subsidizes a portion of the interest on loans for green remodeling projects carried out by private building owners. The program supported approximately 80,000 cases through 2023, but new support was suspended from 2024. To increase public awareness and promote the participation of large buildings, the support requirements have been improved.

The basic interest support rate has been raised by 0.5 percentage points, from the previous 4% to 4.5%. If the energy performance improvement rate is 30% or higher, or if the applicant belongs to a lower-income group, has multiple children, is a senior citizen, or is a newlywed couple, an additional 1 percentage point will be provided, for a maximum support rate of up to 5.5%. For large non-residential buildings, the support ceiling has been raised from 5 billion won to 20 billion won. The program also includes differentiated support based on the rate of performance improvement.

Starting this year, consulting services will also be provided to assist building owners during the decision-making process. Experts will visit buildings seeking green remodeling to provide tailored solutions, such as pre-diagnosis of energy performance, analysis of expected construction costs and heating/cooling cost savings, and suggestions for optimal improvement plans. If a building owner who has received consulting later applies for the Interest Support Program, the consulting provider will also assist in preparing application documents and administrative procedures.

The Ministry will accept public applications for consulting service providers from March 17 to April 15, and will select providers accordingly. During the first half of the year, building owners wishing to receive consulting will be recruited.

Jeong Euikyung, policy chief at the Ministry of Land, Infrastructure and Transport, said, "By combining interest support benefits with free consulting, we hope to relieve the concerns of citizens who have hesitated to undertake green remodeling due to lack of funds or information," adding, "We hope that this initiative will encourage more people to actively participate in green remodeling, which contributes to energy savings."

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