The Housing and Urban Guarantee Corporation (HUG) will provide public guarantees worth 100 trillion won annually to support the government's housing supply expansion policy. The organization is also launching a 'rental deposit trust' program to manage tenants' deposits through a public entity.
Choi In-ho, president of HUG, stated during a National Assembly audit on October 15, "We aim to become a comprehensive public platform that supports housing supply and residential finance for the stability of citizens' housing."
In line with the government's housing supply policy, HUG plans to offer public guarantees for housing projects amounting to 100 trillion won each year. This initiative will provide liquidity support to small construction companies and developers of unsold homes, while also enhancing construction financing for non-apartment developers in the metropolitan area.
Choi emphasized, "We will supply public guarantees for housing projects in accordance with the government's housing supply policy and support liquidity for small construction firms and unsold housing developers facing funding difficulties."
HUG is also pursuing a new initiative to restore trust in the rental market. The organization plans to introduce a rental deposit trust, which will be managed by a public entity, to protect deposits and support stable rental operations.
Choi highlighted, "We will provide tenants with secure rental housing and support landlords with stable rental operations to restore trust in the rental market and alleviate transaction anxieties."
Additionally, HUG will implement system improvements to prevent rental damage. A pre-approval system will be introduced to verify the eligibility for guarantee subscriptions before signing rental contracts, and the functionality of the Safe Rental App will be enhanced to prevent tenant damage from the contract stage. The supply of secure rental housing will also be expanded.
Furthermore, HUG plans to establish a housing supply fund to create a sustainable housing safety net and expand real estate data services, including providing appropriate market prices for villas and certifying low-risk properties.
Consultation and review processes will also be strengthened using artificial intelligence (AI) to improve customer service convenience and operational efficiency.
As the expansion of housing supply may increase the financial burden on construction companies, the effectiveness of HUG's guarantee support in facilitating project initiation and improving supply speed will be crucial.
Choi stated, "I am visiting sites and communicating with customers to provide more friendly and accurate assistance to the public, and I will do my best to ensure that all employees contribute to making HUG a friendly and transparent organization."
* This article has been translated by AI.
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