Seoul to Offer Early-Stage Loans for Moa Housing Projects, Totaling 8 Billion Won

[Financial News] The Seoul Metropolitan Government has selected seven sites for its “Moa Housing Initial Project Cost Loan Support” program and will provide 8 billion won. Its goal is to proactively prevent project delays caused by funding shortages, a first nationwide.
According to the Seoul Metropolitan Government on the 15th, this support is a follow-up measure to the “Moa Housing and Moa Town Revitalization Plan” announced last year. The key is to use the Seoul Housing Promotion Fund to provide low-interest loans for design fees, service fees and other expenses needed immediately after an association is established.
Until now, block housing maintenance projects have been eligible for early-stage project-cost loans through the Korea Housing & Urban Guarantee Corporation (HUG). But the Seoul Metropolitan Government has introduced its own loan program to meet the sharp increase in funding demand as project areas have expanded.
The selected areas comprise four block housing maintenance projects and three small-scale reconstruction projects. The loan amount is capped at 2 billion won per area and 5% of total project costs. The loans carry an annual interest rate of 2.2%, have a three-year term and require the principal and interest to be repaid in a lump sum at maturity.
If approval for the project implementation plan has not been obtained, the loan term may be extended in one-year increments with approval from the Seoul Metropolitan Government. The maximum term is seven years from the date of the initial loan.
After completing the necessary procedures, including obtaining an HUG loan guarantee, the selected associations can apply for loans from the Seoul Housing & Communities Corporation (SH). The loans are expected to be disbursed in phases starting in October. Myeong No-jun, head of the Seoul Metropolitan Government’s Housing Office, said, “We will continue to strengthen our support to ease the financial burden on associations and help Moa Housing improvement projects move quickly toward groundbreaking.”

[email protected] Kwon Jun-ho Reporter