HUG unsold housing buyback program hits only 16% of target

The Korea Housing & Urban Guarantee Corporation (HUG) is facing significant underperformance in its 'Unsold Housing Safe Buyback' program, designed to provide liquidity to regional construction companies. As of September 2026, approved buybacks totaled 972 units, representing only 16% of the government's target of 6,000 units for the period spanning the second half of 2025 through this year.

Despite the government raising the maximum buyback price from 50% to 60% of the sale price to encourage participation, the program has seen limited uptake in regions such as Busan, Gwangju, and Jeonnam. HUG attributes this to the short one-year buyback period, which many developers find burdensome, leading them to opt for discounted sales instead.

National Assembly member Jeong Hee-yong has criticized the program for being disconnected from field realities. While HUG is discussing extending the buyback period to two years, the construction industry is calling for further easing of requirements, specifically requesting that the minimum construction progress threshold be lowered from 50% to 30% to allow for earlier liquidity support.