Korea Housing & Urban Guarantee Corporation (HUG) will discount home pre-sale guarantee fees and extend a special PF guarantee to support the construction industry struggling from the ripple effects of the Middle East war.
HUG said on the 20th that it held an emergency current-issues review meeting presided over by President Choi In-ho and decided to push forward with a "public-interest enhancement plan" that includes these measures.
First, it will temporarily cut by 30% until May next year the guarantee fee for the home pre-sale guarantee that protects buyers if a developer defaults or goes bankrupt. The measure applies not only to general dwellings but also to mixed-use residential complexes.
For business sites where PF loan guarantees have been issued, the discount rate on guarantee fees will be expanded to as much as 60%. Guarantee fees for loan guarantees to finance maintenance projects such as reconstruction and redevelopment will also be discounted by 30% until May next year.
The guarantee fee cut will take effect in May after an internal rule revision and will be applied automatically without a separate application. It will apply equally not only to new guarantees but also to partitioning guarantees for the remaining project costs of existing business sites.
Along with this, HUG also decided to extend for one year, until June next year, the special measures that ease requirements such as PF guarantee limits to support liquidity.
Choi In-ho, president of HUG, said, "We expect this measure to ease the burden on the construction industry and help invigorate the housing market," adding, "We will also review additional support measures."