Public redevelopment interest subsidy expanded — now covers relocation loans, 3 more project sites added
Source material is a Korean government announcement (in Korean).
The public redevelopment interest subsidy is extended from project-cost loans to relocation loans, and 3 new sites are added. Relocation loan interest is supported from the loan execution date until the move-in designation period (60 days); details on applying can be checked through each site's implementer (LH, SH, GH).
Key facts
| Eligible sites | In addition to the existing 35, new sites including 3 additionally selected public redevelopment candidate sites |
|---|---|
| Relocation loan eligibility | Relocation loans taken by one-home owners to move or to return tenants' lease deposits — loans to multi-home owners are excluded |
| Limit | Basic relocation loan of up to 70% of the jeonse or other deposit per rights holder, capped at 300 million won |
| Support period | Interest supported from loan execution until the move-in designation period (60 days) |
| Existing project-cost subsidy | Supports the portion of the loan rate above 1.8%, up to 2 percentage points |
| Applying and checking | Each site's implementer (LH, SH, GH) |
| Inquiries | Ministry of Land, Infrastructure and Transport, Housing Renewal Policy Division, 044-201-3394 |
Last checked:
On October 1, 2026, the Ministry of Land, Infrastructure and Transport (국토교통부), together with HUG, LH, SH and GH, announced it is amending the public redevelopment interest subsidy agreement to widen the eligible project sites and extend support to relocation costs. In addition to the existing 35 sites, new sites such as 3 additionally selected public redevelopment candidate sites can receive the subsidy, and the subsidy, previously limited to project costs, extends to residents' relocation loans. Interest is supported from the loan execution date until the move-in designation period (60 days).
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
How much would interest costs fall?
The ministry said a one-home owner who borrows a basic relocation loan of 300 million won at an annual rate of 4.8% is expected to save 6 million won in interest per year.
Loans from which financial institutions are covered?
Loans from all financial institutions that handle HUG loan guarantees, including commercial banks, regional banks, the Korea Development Bank, NongHyup and Suhyup, are covered.