Seoul City will provide a total of 5.3 billion won in loans to the maintenance project promotion committee and unions. The city announced on the 3rd that it is publicly recruiting the maintenance project promotion committees and unions eligible for loan support.
This support is intended to reallocate the 5.3 billion won that was not executed due to the withdrawal or failure of eligible applicants from the 24 billion won in loan support in the first half of this year.
To revitalize maintenance projects, Seoul City has implemented a loan support system utilizing public funds since 2008. By July 2025, the total amount of support will reach 330 billion won.
The promotion committee and unions can use the amount received from Seoul City for various project costs, such as service fees and general meeting expenses, as well as for operating expenses.
Eligible applicants include redevelopment and reconstruction unions and promotion committees for dwelling maintenance and urban maintenance. They can apply if they meet the requirements for funding borrowing and total assembly approval. The loan limit is up to 7.5 billion won per area, with unions able to borrow up to 6 billion won and promotion committees up to 1.5 billion won. The interest rate is 4.0% for unsecured loans and 2.5% for collateral loans, with a five-year maturity and lump-sum repayment conditions.
The promotion committee can extend for one year until the contractor is selected, and the union can extend until the application for completion approval, one year at a time. Unions and promotion committees wishing to apply should submit their application and supporting documents to the maintenance project department of the relevant autonomous district from the 4th to the 26th.
Seoul City will review the progress of the projects by area and execution plans next month to determine the eligible applicants and the amounts. Subsequently, loans are expected to be made through the Korea Housing & Urban Guarantee Corporation (HUG), the entrusted management agency.