Korea Land & Housing Corporation (LH) said on the 27th that at the LH Seoul Regional Headquarters it signed a business agreement with Korea Housing & Urban Guarantee Corporation (HUG) to establish a financial support system for private-sector operators.
The agreement was pursued to expand dwellings supply by invigorating private-participation projects through financial support for private operators, in line with the government's Sept. 7 measures to expand private-participation projects.
Attending the signing were Oh Ju-heon, LH head of the Public Dwellings Division, and Choi Jong-won, HUG head of the Fund Business Division.
Under the agreement, the two organizations agreed to cooperate on: ▲ building a support system for private operators participating in private-participation public dwellings projects ▲ identifying improvements to expand the foundation for invigorating dwellings supply ▲ operating related consultative bodies and establishing collaboration systems.
LH plans to work with HUG to prepare practical financial support measures, including creating a new HUG guarantee product to support funding for private construction companies. The guarantee will cover the amounts privately raised first for for-sale dwellings within contract-type private-participation projects, and the lending rate will be decided in consultation with financial institutions after the new guarantee is introduced.
Meanwhile, LH pushed private-participation projects for 30,000 units and about 830 billion won in the first half of this year. In the second half, it is additionally implementing projects for 51,000 units across a total of eight blocks (three packages), including the third new towns, worth about 1.4 trillion won, and among them, two blocks will be announced at the end of this month as pilot projects for financial support to private operators.
LH plans to accelerate dwellings supply by strengthening incentives for participation by outstanding private operators and expanding projects. Through private-participation projects, it plans to push the start of construction for about 18,000 units by the end of this year, including the quantities tendered in the first half.
Oh Ju-heon, LH head of the Public Dwellings Division, said, "By expanding support for private construction companies participating in public dwellings projects, we expect not only to invigorate the private construction economy but also to contribute to expanding the supply of high-quality public dwellings," adding, "We will continue to work with related agencies to further strengthen the public role in dwellings supply and steadily push to expand dwellings supply."