HF Guarantee Now More Accessible for Officetel and Commercial Building Construction 

- HF fully guarantees construction costs when residential space accounts for at least 70% of total construction area

Guarantees for the construction costs of office and commercial buildings have become more accessible for projects with residential space comprising over 70% of the total construction area. Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) announced on October 12, 2023, that it will expand the scope of its guarantee support for businesses through amendments to the Enforcement Decree of the Housing Finance Corporation Act* to facilitate the smooth construction progress of housing operators facing difficulties amid the construction industry slowdown. 

 * To be amended on October 4, 2023, and enforced on October 12, 2023

Prior to these amendments, the HF Business Guarantee exclusively covered the construction costs of residential space. Consequently, housing operators were required to secure separate loans for non-housing areas such as office and commercial buildings. Moving forward, if residential space constitutes 70% or more of the total building area, the guarantee will extend to cover the entire construction cost, including non-housing components. This significant change is expected to alleviate the financial burden on housing operators.

An HF officer commented, “Through this change, housing operators will be able to secure the funds that they need by using HF guarantees. We remain committed to actively fostering stability in the real estate project financing (PF) market to boost the housing supply.”'

This will apply to guarantee applications submitted on October 12, 2023, onward. More details and consultations are available at HF branches across the nation. 

※ Reference: HF Business Guarantee Expansion Q&A