Seoul provides 8 billion won in loans for small-scale housing projects

The Seoul Metropolitan Government has approved 8 billion won in loans to support seven small-scale housing redevelopment zones. This initiative, the first of its kind in the country, aims to alleviate financial difficulties faced by cooperatives during the early stages of project development.

The funding will be distributed among four street-level housing redevelopment zones and three small-scale reconstruction zones. Each zone can receive up to 2 billion won, capped at 5% of the total project cost, with a low interest rate of 2.2% per annum. Loans are structured with a three-year maturity and a single lump-sum repayment, though extensions of up to seven years may be granted with city approval.

Disbursements are scheduled to begin in October through the Seoul Housing and Communities Corporation (SH), utilizing the Seoul Housing Promotion Fund. The program serves as a follow-up to the ‘Moa Housing and Moa Town Activation Plan’ announced last year, specifically targeting small-scale projects that previously lacked dedicated early-stage financing options.