On May 28, Woori Bank announced that it has signed a memorandum of understanding (MOU) with the Gyeonggi Housing and Urban Corporation (GH) for financial support for buyers of shared equity housing.
In this public sale model, buyers initially acquire only a portion (10-25%) of the housing equity and gradually purchase the remaining equity over 20 to 30 years, ultimately achieving full ownership.
Despite the advantage of significantly reducing initial financial burdens, financial support for shared equity housing has faced limitations. Due to the shared ownership structure between buyers and the public supplier, traditional mortgage structures have not recognized the equity as collateral, making the development of exclusive loan products impossible.
In response, the two organizations have jointly developed a financial support model based on the 'bond transfer method,' utilizing the buyer's right to claim the return of their equity acquisition funds. Woori Bank plans to complete the product development before the first sale announcement of shared equity housing, scheduled for October.
Jung Jin-wan, President of Woori Bank, stated, "This agreement is significant as it proactively establishes a financial support system tailored to a new public housing supply model. We will continue to strengthen collaboration with public institutions to expand financial products that support housing stability and asset formation for those without homes."
* This article has been translated by AI.
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