Seoul City Expands Interest Subsidy for Low-rise Housing Improvement to Include Individual Business Owners

[Financial News] Seoul City is expanding the target for interest subsidy on business loan funds to improve low-rise residential environments and is recruiting participants.
Seoul City announced on the 2nd that it is promoting this project as part of the 'Human Town 2.0' project activation plan.
Human Town 2.0 is a Seoul City policy that supports individual construction such as new construction and remodeling of non-apartment houses like multi-family and multi-unit homes in low-rise residential areas where large-scale redevelopment is difficult.
First, the support target has been greatly expanded to lower the barrier for individual participation. Previously, only those with 'business' qualifications such as individual business owners and corporations were supported, but now all building owners, including individuals, individual business owners, and corporations, can apply. Individuals who intend to build a house for residential purposes can receive interest subsidy support without separate business registration procedures.
The types of housing supported have also diversified. 'Multi-family housing' has been newly added to the existing multi-family, multi-unit, and row houses. This is a plan to activate the supply of new types of housing such as studio apartments and share houses to match the increase in single-person households and the diverse housing preferences of the youth.
The timing for support application has also been advanced. Previously, interest subsidy applications were only possible after the building permit was fully processed, but now they can be submitted as soon as the building permit is received.
The standard for neighborhood living facility area is also changed from the existing above-ground total floor area limit of 30% to a total floor area limit of 30% including basement floors.
In the future, building owners can construct houses exceeding 85㎡ for one household in which they will reside. This measure allows building owners to design living spaces according to their family or lifestyle patterns, enabling more practical housing construction. However, the construction cost of the household exceeding 85㎡ is excluded from support, and the building owner must bear the full cost.
Meanwhile, the scale of interest subsidy support for business loan funds remains the same as before. Up to 3.0% per annum is supported according to the loan interest rate for construction loan funds of up to 3 billion KRW per project. The support period is up to 3 years from the start of construction, and it ends when the sale of all housing units is completed or ownership transfer is finished.
Applications under the improved system will be accepted until December 31, and will end when the budget of 225 million KRW is exhausted. Applicants can visit the Seoul City Housing Environment Improvement Department after receiving a preliminary loan review related to new construction from Shinhan Bank.














going@fnnews.com Choi Ga-young Reporter