Woori Bank, GH Launch Loan Model for Korea's First Equity-Sharing Housing

Woori Bank and the Gyeonggi Housing & Urban Development Corporation (GH) have jointly developed a pioneering loan model to support South Korea's first "equity-sharing housing" project. This innovative housing supply model is set to be piloted in the latter half of this year.

The equity-sharing housing model allows homeowners to initially purchase only a portion of the property's equity. They can then gradually acquire the remaining shares over time while living in the home. This approach significantly reduces the initial financial burden for prospective buyers, making homeownership more accessible.

GH will be offering 240 units of this equity-sharing housing, sized under 60 square meters, within the Gwanggyo A17 block in Suwon. This project is the first of its kind in the country.

To address the limitations of traditional mortgage loans for this unique housing structure, Woori Bank and GH collaborated to create a specialized financial support system. The model is based on assigning the buyer's "claim for return of equity acquisition funds" to the bank. This innovative structure is designed to be optimized for the equity-sharing housing project, providing a tailored financial solution.

Woori Bank stated that this collaboration marks the formal establishment of a financial support system specifically designed for equity-sharing housing. The bank aims to build a financial supply chain that lowers the initial costs for housing for those who do not own homes and supports their long-term asset formation.

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Through this agreement, the establishment of a financial support system optimized for the structure of the equity-sharing housing project is expected to begin in earnest. We have built a financial supply chain that lowers the initial burden for housing for those who do not own homes and helps them build long-term assets.