The Seoul Metropolitan Government announced on the 2nd that it would significantly expand the range of beneficiaries for the “interest difference support for business loans” to promote “Human Town 2.0” aimed at improving the living environment in low-rise residential areas. This measure is designed to lower the threshold for construction owner participation and enhance the effectiveness of project involvement.
Human Town 2.0 is a policy that supports the construction and remodeling of non-apartment houses, such as multi-household and multi-family homes, within low-rise residential areas where large-scale maintenance projects are challenging.
Firstly, the city expanded the support target to include individuals, sole proprietors, and corporations. Personal homeowners with residential purposes can receive interest difference support without business registration procedures, while rental purposes require registration as a rental business operator before applying.
The types of supported housing have also diversified. In addition to existing multi-household and multi-family houses, the inclusion of multi-residential facilities allows for new forms of housing supply, such as studio apartments and shared houses.
The application timing has also been advanced. Previously, applications were only possible after completing construction permits; henceforth, applications can be submitted during the construction permit submission phase.
The criteria for neighborhood living facility area have changed from ground total floor area to including basements, restricted to 30% or less. An exception allows for one household to exceed 85㎡ of exclusive area if the construction owner resides personally, though any excess household would be excluded from support.
The support scale remains the same, with loans of up to 3 billion KRW per project, supporting interest rates up to an annual 3.0% depending on the rate level, for a period of up to three years from the start of construction.
Applications will be accepted until December 31, ending early if the budget of 2.25 billion KRW is exhausted. Applicants must first undergo a preliminary review by Shinhan Bank and then submit in person to the Seoul Residential Environment Improvement Division.
Seoul plans to assign “Humanators” to each project site to provide professional consulting from planning and design stages. Additionally, it will create basic facilities such as communal parking lots and community facilities, enhancing support effects by linking with regulatory easing such as special construction zones.
Choi Jin-seok, head of Seoul’s Housing Division, stated, “This improvement reflects field demands and increases citizen accessibility,” adding, “We will actively support diverse residential demands.”
