HUG, Busan International Finance Promotion Institute sign MOU to boost financial hub, regional development

Korea Housing and Urban Guarantee Corporation has joined forces with the Busan International Finance Promotion Institute to advance Busan's standing as a financial hub and drive balanced regional development.

HUG announced Wednesday that it signed a memorandum of understanding with the institute Tuesday at the Busan International Finance Center in Munhyeon-dong, Busan, aimed at fostering balanced development in the financial industry and local communities.

The agreement came as HUG — one of the key public institutions that relocated to Busan — established a strategic partnership with the institute, which is dedicated to nurturing Busan's financial center and revitalizing its financial industry.

The two organizations agreed to combine their respective financial expertise and human and material resources to expand Busan's financial ecosystem and inject new energy into the local economy. Under the MOU, they plan to pursue practical cooperation in stages, covering joint policy initiatives, specialized research, and the hosting of global forums and seminars. The partnership is expected to serve as a leading model of how public institutions relocated from the greater Seoul area can work with regional specialists to deliver tangible results in balanced national development.

HUG is the country's only public institution dedicated to housing and urban finance, operating under the Ministry of Land, Infrastructure and Transport. It exclusively manages the Housing and Urban Fund — worth about 234 trillion won ($176 billion) — to promote residential welfare and urban regeneration, and supports housing stability through pre-sale guarantees, rental deposit guarantees, and real estate project financing guarantees.

Building on its accumulated policy finance expertise, HUG plans to drive the transition to digital finance and advance real estate finance, while taking a leading role in positioning Busan as a global financial hub — going beyond simply establishing a regional presence.

"This agreement will be a decisive turning point for Busan to emerge as a truly global financial center, while fulfilling our responsibilities as a public institution that has relocated to the city," HUG President Choi In-ho said. "HUG will focus its capabilities not only on its core mission of housing stability, but also as a key partner in energizing the local economy and leading the creation of a future financial ecosystem."

Meanwhile, HUG recently signed a mutual cooperation MOU on balanced regional development and overcoming the crisis of local population decline with six regional banks nationwide, including Jeonbuk Bank and iM Bank, as well as Korea Housing Finance Corporation and the Korea Housing Builders Association.