The Ministry of Land, Infrastructure and Transport said on the 8th it will launch a special one-year product that sharply lowers the interest rate on loan support for initial project costs for reconstruction and redevelopment projects.
The initial project cost loan product offers low-interest loans for project costs (service fees, operating expenses, general meeting costs, etc.) to promotion committees and cooperatives nationwide that face difficulties securing funds at the start of a project. Introduced in Mar. 2025, it is being used in Seoul, Gyeonggi, Busan, Daegu and elsewhere.
The one-year special product discounts the annual interest rate to 1% and also applies a Korea Housing & Urban Guarantee Corporation (HUG) guarantee fee rate of 0.2–0.4%, an 80% discount from the previous level. These terms apply only to cases where project applications and approvals are completed by Dec. 31 and will be offered until this year's project budget (42.25 billion won) is exhausted.
The project was prepared as a follow-up to the 9·7 dwellings supply measures, based on the judgment that more preemptive and bold support is needed to reinvigorate maintenance projects.
Details on initial project cost loan products, including the one-year special product, can be found on the "Fund Urban Regeneration Portal," and inquiries about project applications can be directed to the regional HUG fund centers for detailed guidance.
Kim Young-guk, head of the Housing Supply Promotion Headquarters at the Ministry of Land, Infrastructure and Transport, said, "We expect this one-year special offer to speed up the progress of maintenance projects and significantly reduce members' financing costs," adding, "We will mobilize every means for the swift and stable supply of dwellings."