HUG achieves a surplus of 15.749 trillion KRW after 4 years… influenced by a decrease in guaranteed incident claims

TechubNews · 2026-03-30T18:50:16+00:00

Residential City Guarantee Corporation(HUG) will achieve a net profit of 1.5749 trillion Korean won in fiscal year 2025, turning a loss into a profit, mainly due to a decrease in guarantee incidents and increased debt recovery. This improvement signifies stability and recovery in the residential guarantee market and may positively impact the role of guarantee institutions and the stability of the housing market in the future.

TechubNews

2026-03-30 18:50:16

Abstract generation in progress

The Housing and Urban Guarantee Corporation (HUG) returned to profitability after four years. The analysis suggests this is the result of fewer guarantee-related accidents and increased performance in debt recovery.

According to the settlement materials for last year released by HUG on March 30, 2026, HUG recorded current net profit of KRW 1.5749 trillion in the 2025 fiscal year. This compares with the previous year’s loss of KRW 2.5198 trillion, indicating a substantial performance improvement of about KRW 4.9947 trillion. Achieving net profit was the first time since 2021, helped by a reduction in guarantee-related accidents and an increase of KRW 600 billion in the amount of debt recovered.

Improvements were also seen in assets and liabilities. As of the end of last year, HUG’s assets totaled KRW 9.1 trillion, up by KRW 2.6125 trillion from the end of 2024, while liabilities were KRW 1.6282 trillion, increasing only slightly. As a result, equity increased by KRW 2.5309 trillion, bringing the reported total to KRW 7.4718 trillion. HUG explained that this financial improvement was driven by last year’s strong performance and the government’s contribution of KRW 959 billion.

This improvement points to stability and recovery in the housing guarantee market. If this trend continues going forward, it is likely to make a positive contribution to strengthening the role of guarantee institutions and stabilizing the housing market. While this may vary depending on government policy support and market conditions, for now it can be viewed as a positive signal.

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