Ministry of Land, Infrastructure and Transport landscape. /Courtesy of News1

The Ministry of Land, Infrastructure and Transport and Korea Land and Housing Corporation (LH) announced on the 5th that they will hold an information session for businesses on the 6th to promote the 'Silver Stay' project.

The information session will include 27 businesses that submitted letters of intent to participate in the Silver Stay bidding announced on Dec. 19 last year, as well as businesses interested in future additional bids. There will be an explanation of the Silver Stay policy and future bidding plans, along with responses to inquiries from businesses received in advance regarding the bidding.

Silver Stay is a public support private rental housing that provides emergency safety, meals, and living support services for those aged 60 and older. Silver Stay applies facility and service standards for the convenience and stability of elderly residents. Residents can live at a price below 95% compared to similar facilities such as senior welfare housing. There is a 5% maximum increase limit upon renewal of the lease contract, and a 20-year lease obligation is applied.

Businesses selected as priority negotiation subjects for the Silver Stay bidding can receive land at a low price. For land provided by LH, the portion supplied as Silver Stay is provided at an average price calculated from the construction cost and appraised value.

During the construction of Silver Stay, support for investment and loans from the housing & urban fund is provided. Construction funds for Silver Stay can receive housing fund loans at interest rates ranging from 2.0% to 2.8%, from 90 million won to 140 million won per household, with the housing fund contributing 70% of the equity. Additionally, project financing guarantees from the Housing and Urban Guarantee Corporation (HUG) will be provided for the private loan portion of the business funds.

Tax benefits during the construction of Silver Stay include a 50-100% reduction in acquisition tax and a 50-100% reduction in property tax. Dwellings valued at 900 million won or less benefit from exemption from comprehensive real estate tax aggregation.

The Ministry of Land, Infrastructure and Transport plans to conduct additional bidding for excellent public land starting in the second quarter of this year. A private proposal bidding targeting land held by private entities will also be promoted, with plans to bid for more than 1,500 Silver Stay units within the year.