"The Later the Sales in Metropolitan Public Housing Sites, the Greater the Loss"... HUG Cuts Guarantee Fees to Accelerate Supply

5% Discount on PF Loan Guarantees, 3% Off Sales Guarantees
Benefit Applies if Resident Recruitment Notice Issued Within 180 Days

The Korea Housing Guarantee Corporation (HUG) has decided to offer a 5% reduction in project financing (PF) loan guarantee fees and a 3% reduction in sales guarantee fees to private developers who expedite sales in public housing sites in the Seoul metropolitan area. This measure is intended to encourage early sales by private developers and accelerate the supply of housing in the metropolitan area, in line with the government's 'Housing Supply Expansion Plan (September 7 Measures)'.

Interior view of a model house in a public housing site in the Seoul metropolitan area. HUG plans to encourage early sales by reducing guarantee fees if the sales period is advanced. Woomi Construction

According to HUG on November 25, the discount applies to private developers who have purchased public housing sites in the metropolitan area from Korea Land & Housing Corporation (LH).

If the public notice for recruiting residents is issued within 180 days from the date of initial project plan approval or building permit, the developer will receive the guarantee fee reduction benefit.

The reduction benefit is not applied upfront but is settled afterwards. Private developers must first pay the full guarantee fee at the standard rate. If they meet the early sales conditions, they will receive a refund of the discounted amount at the stage when the guarantee is terminated.

Developers who use both PF loan guarantees and sales guarantees can receive both discounts, thereby reducing overall project costs.

Yoon Myungkyu, Acting President of HUG, stated, "Through the early sales discount system, we will actively support the rapid supply of housing in the metropolitan area," adding, "We will continue to cooperate with government ministries to fully support housing developers and revitalize housing supply."

This content was produced with the assistance of AI translation services.