Article 9(Use of fund) #
(1) The housing account of the Fund shall be used for any of the following purposes: <Amended on Jan. 19, 2016; Mar. 13, 2018; Jul. 20, 2021>
1. Financing or lending for the following:
a. Construction of national housing;
b. Purchase, renting, or renovation of a housing unit not bigger than national standard housing;
c. Construction of quasi-housing;
d. Purchase, renting, or renovation of quasi-housing;
e. Remodeling of a housing unit not bigger than national standard housing;
f. A housing site preparation project designed to construct national housing;
g. Construction of industrialized housing under Article 51 of the Housing Act (limited to housing units not bigger than the size prescribed by Presidential Decree);
h. Construction of a housing unit the size of which is not bigger than that of national standard housing, which recruits occupants after its housing construction process reaches the standard prescribed by Decree of the Ministry of Land, Infrastructure and Transport;
i. Expenses incurred by the Korea Land and Housing Corporation in purchasing housing units subject to the sales price ceiling system pursuant to Article 64(2) of the Housing Act;
j. Funds necessary for constructing rental housing and establishing relevant infrastructure, etc. to revitalize free economic zones designated pursuant to Article 4 of the Special Act on Designation and Management of Free Economic Zones;
2. Financing, contributions, or loans for any of the following institutions, Funds, and special accounts:
a. Korea Housing and Urban Guarantee Corporation established pursuant to Article 16 (hereinafter referred to as "HUG");
b. Korea Land and Housing Corporation;
c. Korea Housing Finance Corporation established under the Korea Housing Finance Corporation Act;
d. The Housing Finance Credit Guarantee Fund established under Article 56(3) of the Korea Housing Finance Corporation Act;
e. Deleted; <Aug. 9, 2017>
f. A special purpose company, etc. under Article 3(1) of the Asset-Backed Securitization Act;
g. A special account for national housing projects established under Article 84 of the Housing Act;
3. Purchase of any of the following securities to facilitate the supply of rental housing and public housing for sale defined in subparagraph 1b of Article 2 of the Special Act on Public Housing:
a. Securities issued by a real estate investment company under subparagraph 1 of Article 2 of the Real Estate Investment Company Act;
b. Collective investment securities issued by a real estate fund under subparagraph 2 of Article 229 of the Financial Investment Services and Capital Markets Act;
c. The Urban and Residential Environment Improvement Fund established under Article 126 of the Act on the Improvement of Urban Areas and Residential Environments;
d. Any other securities prescribed by Presidential Decree, which relate to the supply of rental housing;
4. Repayment of principal and interest of the following:
a. Deposits received, deposits, or loans under Article 5 or 6;
b. National housing bonds under Article 7;
5. Transfer or loans to the urban account;
6. Expenses incurred in financing, operating, and managing the Fund;
7. Education and training in Korea and abroad designed to train professional human resources in the housing and urban field, as well as research and surveys to improve relevant systems;
8. Housing projects promoted as the Government policy;
9. Any other projects prescribed by Presidential Decree to fulfill the purpose of establishing the housing account.
(2) The urban account of the Fund shall be used for any of the following purposes: <Amended on Feb. 8, 2017; Mar. 13, 2018; Apr. 23, 2019; Aug. 20, 2019>
1. Loans for the following:
a. Any project defined in subparagraph 2a through c of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments, and any project defined in Article 2(1)2 and 3 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement;
b. Expenses incurred in establishing infrastructure under Article 29(2) of the Special Act on the Promotion of Urban Renewal among infrastructure under subparagraph 7 of Article 2 of that Act;
2. Financing, investments, or loans for expenses incurred in implementing any project meeting the requirements prescribed by Presidential Decree among the following projects:
a. Expenses incurred in implementing an urban regeneration project under Article 2(1)7 of the Special Act on Promotion of and Support for Urban Regeneration;
b. Expenses incurred in constructing buildings (including expenses incurred in purchasing land) deemed necessary by the head of the relevant local government for urban regeneration within an urban regeneration revitalization area under Article 2(1)5 of the Special Act on Promotion of and Support for Urban Regeneration;
c. Expenses incurred in implementing an industrial complex renovation project under subparagraph 11 of Article 2 of the Industrial Sites and Development Act;
2-2. Financing or loans provided to an entrusted management real estate investment company (referring to an entrusted management real estate investment company under subparagraph 1b of Article 2 of the Real Estate Investment Company Act) that is operated for the purpose of promoting urban regeneration by purchasing real estate created from a project under subparagraphs 1a and 2a);
3. Loans for any of the following Funds and special accounts:
a. The Urban and Residential Environment Improvement Fund established pursuant to Article 126 of the Act on the Improvement of Urban Areas and Residential Environments;
b. A special account for urban renewal acceleration established under Article 24 of the Promotion of Urban Renewal;
c. A special account for urban regeneration established under Article 28 of the Special Act on Promotion of and Support for Urban Regeneration;
3-2. Financing provided to an investment association established for the purpose of making investments related to urban regeneration, such as support for startups and revitalization of local commercial areas in urban regeneration revitalization areas under Article 2(1)5 of the Special Act on Promotion of and Support for Urban Regeneration;
3-3. Purchase of securities issued by a real estate investment company (referring to a real estate investment company under subparagraph 1 of Article 2 of the Real Estate Investment Company Act) established to conduct the projects specified in the items of subparagraph 2, and by a real estate investment company established pursuant to subparagraph 2-2;
4. Repayment of principal and interest of the deposits received, deposits, or loans under Article 5 or 6;
5. Expenses incurred in financing, operating, and managing the Fund;
6. Any other projects prescribed by Presidential Decree to accomplish the purpose of establishing the urban account.
(3) The limits on the total amount to be financed or invested pursuant to paragraph (1) or (2) shall be prescribed by Presidential Decree.
(4) The Minister of Land, Infrastructure and Transport may operate any surplus funds in the Fund by the methods prescribed by Presidential Decree.
(5) The Minister of Land, Infrastructure and Transport may operate the Fund as limited liability loans by methods prescribed by Presidential Decree, in any of the following circumstances: <Added on Aug. 11, 2015>
1. Purchasing a housing unit not bigger than national standard housing under paragraph (1)1b;
2. Purchasing quasi-housing under paragraph (1)1d.
(6) The Minister of Land, Infrastructure and Transport may limit financing or lending under paragraph (1) or (2), as prescribed by Decree of the Ministry of Land, Infrastructure and Transport, if the project entity or constructor is suspended from business or the black mark given under Article 53 of the Construction Technology Promotion Act meets the criteria prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Added on Mar. 13, 2018>