Kim Ho-cheol, Chairman of the Board of Audit and Inspection, attends a press conference at the state auditor's headquarters in Seoul, South Korea, 24 June 2026. Photo by YONHAP / EPA
July 30 (Asia Today) -- South Korea's state-run housing guarantor failed to properly investigate debtors and recover claims after paying about 15 trillion won, or $10.3 billion, under defaulted guarantees over the past five years, a government audit found Thursday.
The Housing and Urban Guarantee Corporation, commonly known as HUG, has yet to recover about 12 trillion won, or $8.2 billion, of that amount.
The Board of Audit and Inspection released the findings of its regular audit of the corporation, identifying problems in guarantee issuance, project financing reviews, debt collection and customer refunds.
HUG provides guarantees intended to protect tenants if landlords fail to return jeonse deposits.
