Korea Housing Builders Association, regional banks and guarantee agencies join hands to support financing for the regional housing industry

[Financial News] The Korea Housing Builders Association is establishing a cooperative framework with six regional banks and housing guarantee institutions to improve financing conditions for small and mid-sized housing developers in regional areas. The plan is to create a virtuous cycle in which linking regional finance with guarantees channels funds into regional housing markets.
On the 8th, the Korea Housing Builders Association signed an agreement at the headquarters of Gyeongnam Bank with Gyeongnam Bank, Jeonbuk Bank, Gwangju Bank, Jeju Bank, iM Bank and Busan Bank, as well as the Korea Housing & Urban Guarantee Corporation (HUG) and the Korea Housing Finance Corporation (HF), to promote the regional housing construction industry.
The agreement was drawn up to address regional depopulation and polarization between regions, and to promote the housing construction industry and regional finance.
The participating institutions agreed to create a financial and guarantee environment that improves access to finance for small and mid-sized housing developers in regional areas and supports the stable pursuit of their projects. They will establish a financial support system connecting regional banks with guarantee institutions, as well as a privately led cooperative network to strengthen regional self-reliance.
They also plan to develop financial and guarantee support measures to underpin housing stability and help future generations settle in regional areas.
The roles of each institution were also spelled out. The association will encourage its members to help revitalize regional finance, including by doing business with regional banks and depositing funds with them. It also plans to identify project sites with strong commercial viability so that local capital can circulate within the region.
The six regional banks will support financing for small and mid-sized housing developers in regional areas and explore tailored financial products and support measures to promote housing stability for future generations.
HUG and HF will work with regional banks to study the development of public guarantee products suited to the characteristics of regional housing markets and support their recovery.
Chairman Kim Seong-eun said, “This agreement will provide a foundation for more flexible financial support and tailored guarantees for small and mid-sized housing developers that have recently been struggling to secure financing. We will do our utmost to build a robust financial and guarantee safety net so that our members can focus on housing construction with confidence.”
[email protected] Choi Ga-young Reporter