Housing Pre-Sale and Maintenance Project Guarantee Fees Cut by 30% Until May Next Year

by Choi Daeyul

Published 20 Apr.2026 18:03(KST)

The Housing and Urban Guarantee Corporation has decided to reduce the housing pre-sale guarantee fee by 30% until May next year. This measure is intended to support construction companies facing difficulties as a result of the Middle East war.

Choi Inho, President of the Housing and Urban Guarantee Corporation, held an emergency meeting on the 20th and announced the implementation of this public-interest reinforcement measure. Although the corporation has been in a situation where it needs to focus on strengthening its financial soundness due to accumulated losses and an increasing volume of subrogated claims, it stated that this decision was made in order to support the government’s housing policy.

The housing pre-sale guarantee is a mandatory guarantee that all housing developers must obtain. It is designed to protect buyers in the event that the developer becomes insolvent or bankrupt. This guarantee applies to both general housing and residential-commercial complexes.

For projects with project financing (PF) loan guarantees, the discount rate on guarantee fees will be increased to up to 60%. The corporation expects that the PF loan guarantee will enable developers to secure low-interest financing and, by lowering the guarantee fee burden, improve project profitability.

Housing Pre-Sale and Maintenance Project Guarantee Fees Cut by 30% Until May Next Year

The guarantee fee for maintenance project financing, which helps provide smooth funding for construction and other project expenses during redevelopment and reconstruction projects, will also be temporarily discounted by 30% until May next year. This discount will be implemented starting next month after amendments to the corporation’s internal regulations and will be applied automatically without the need for a separate application.

This discount will apply not only to newly approved guarantees, but also to the remaining project costs of sites that have already received guarantee approval prior to the fee reduction, when new partial guarantees are issued. The corporation also announced that, in order to supply liquidity to the housing industry, the temporary easing of PF guarantee requirements will be extended for one year until June next year.

President Choi stated, “Although restoring financial soundness is an urgent task, it is also a crucial public responsibility to ensure that the foundation for housing supply does not collapse in the face of external adversities, even at the cost of lower revenue. We hope that this financial support will provide relief to the construction industry and serve as a catalyst to revitalize the housing market.”