HF Helps Provide Young Adults with Affordable Rental Homes in Good Locations

- HF inks MOU with four business partners for the Busan Dream Apartment project 

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on September 14, 2020, that it signed an MOU with Busan Metropolitan City, Busan Bank, Woori Bank, and Korea Housing Builders Association (Busan Metropolitan City Council) to supply young adults with low-cost rental homes in popular locations. 

Under the MOU, HF will provide guarantees for Busan Metropolitan City’s Busan Dream Apartment* project and establish a closely-knit cooperation network with the other MOU signatories. 

   * Located in commercial areas with good accessibility, these long-term rental apartment units will be available for newlywed couples and young adults at 80% or less of the market value rent.

To ease the burden of construction financing for Busan Dream Apartment builders and help them proceed with their construction schedule, HF will raise public-private guarantee funds from the National Housing Fund and commercial banks, helping to raise up to 70% of the total construction costs including long-term costs (incurred from construction) and initial costs (incurred from land purchases).

This will reduce their interest burden, allowing them to provide rental homes at lower-than-market rents in easily accessible areas. The builders will also add a daycare center, book cafe, and other community facilities to rental apartment complexes, offering more convenience than conventional rental homes. 

HF CEO Lee Jung-Hwan said, “I hope that newly married couples and young adults will be able to dream for a better future in a better home. To fulfill our social responsibility as a public institution, HF will support young people to enjoy housing stability and local small home builders to grow their business.”