Korea Housing & Urban Guarantee Corporation (HUG) has improved its guarantee system for Youth Safe Housing to support swift move-ins for approximately 2,000 households across 10 project sites that failed to recruit tenants even after construction completion.
HUG announced on the 15th that CEO Choi In-ho visited the Seoul Youth Safe Housing project site "Edgar Gaebong" and held a meeting with Seoul Metropolitan Government officials and housing developers to discuss guarantee support measures.
The key change is an improvement in the guarantee issuance process. Previously, project sites recruiting tenants after completion faced difficulties obtaining guarantees because they could not repay existing project financing (PF) loans. Under the new system, guarantees can be issued first before loan repayment, which is expected to resolve move-in delays. The new system will be implemented starting from the borrower.
The meeting was arranged to hear directly from developers struggling with prolonged construction cost increases and high interest rates. Youth Safe Housing is a Seoul Metropolitan Government policy program that provides housing near transit stations at rental rates below market prices for young people and newlyweds.
A Seoul Metropolitan Government official said, "This system improvement will ease the burden on developers and greatly help accelerate the supply of approximately 16,000 Youth Safe Housing units scheduled for completion by 2028."
CEO Choi said, "We expect young people and newlyweds to be able to move into Youth Safe Housing quickly," adding, "We will work closely with the central and local governments to ensure swift supply of quality housing."
