Woori Bank will join hands with Gyeonggi Housing and Urban Corporation (GH) to build South Korea's first dedicated financial support model for "equity accumulation sale housing."

Woori Bank said on May 28 it signed a memorandum of understanding with GH to provide financial support for buyers of equity accumulation sale housing.

Equity accumulation sale housing is a public housing model in which buyers initially acquire only part of a home's equity and then purchase the remaining shares in stages while living there. The existing mortgage lending framework has had limits in providing financial support.

Woori Bank and GH jointly developed a dedicated financing model based on a bond-assignment method that uses buyers' "refund claim rights" for equity acquisition payments. They described it as the first case in South Korea to build a financing support framework tailored to the structure of equity accumulation sale housing.

The two institutions plan to complete development of related financial products before the first sales notice for equity accumulation sale housing, scheduled for the second half of the year.

Jin-wan Jeong (정진완), CEO of Woori Bank, said, "It is significant in that we proactively prepared a financial support framework tailored to a new public housing supply model." He added, "We will continue to expand financial products that support housing stability and asset building for end-user demand among those without homes through cooperation with public institutions."