Pohang signs MOU with Samdo to supply social-contribution private rental housing

Pohang city in North Gyeongsang Province signed an MOU with Samdo Co. on Wednesday to supply social-contribution private rental housing for households in need of residential support, including families with multiple children and newlyweds.

Under the agreement, Samdo will designate 100 of the 934 units in a publicly supported private rental housing complex — the first of its kind in the region — being developed in Uhyeon-dong, Buk-gu, as social-contribution rental housing.

Residents of the 100 designated units will not be charged monthly rent for 10 years.

The arrangement is expected to dramatically improve housing stability for vulnerable groups, young people and newlywed couples.

Specific lease terms — including deposits and maintenance fees — as well as criteria for recruiting and selecting tenants will be determined in accordance with relevant laws and a detailed operational plan to be established later.

Samdo will take full charge of all aspects of the project, from planning, design and construction to tenant recruitment and selection, lease contracts, and housing management and rental operations.

The city will provide administrative support, including guidance on relevant laws and procedures, and will help publicize the public-interest purpose of the project.

The initiative is particularly significant as a new public-private residential welfare model that links corporate social contribution to local housing welfare without placing a direct fiscal burden on the city.

"It is deeply meaningful that the voluntary social contribution of a local homegrown company will ease the housing cost burden on residents and dramatically expand residential welfare," Pohang Mayor Park Yong-seon said. "We will spare no administrative support and cooperation to ensure that the social-contribution private rental housing is supplied and operated without a hitch."

Heo Sang-ho, chairman of Samdo, said giving back to the community is an important responsibility for a company that has grown on the foundation of Pohang. "We will do our utmost in housing supply and rental operations so that this project can provide real help in improving the housing stability and welfare of Pohang residents," he said.