South Korea’s revised loan-to-value (LTV) calculation allows redevelopment cooperative members to use the higher of their pre-project or post-completion asset valuation when determining relocation loans. Effective August 31, the change can increase borrowing for members whose existing property valuations were below 1.5 billion Korean won. A member with a 1 billion won pre-project valuation, for example, could see a 40% LTV loan rise from 400 million won to 520 million won if the new apartment is valued at 1.3 billion won. However, the basic relocation loan remains capped at 600 million won. That ceiling is reached when collateral is valued at 1.5 billion won in Seoul’s regulated areas, where a 40% LTV applies, meaning a 2 billion won valuation would still produce only a 600 million won loan rather than the 800 million won indicated by the ratio. Associations including Sanho Apartment in Yongsan-gu and Bukahyeon District 2 in Seodaemun-gu are discussing revised collateral assessments and loan terms with banks. The change is expected to help lower-valued projects, while its effect is limited in Gangnam, where existing property values often already exceed the cap. The government plans to introduce a supplementary loan guarantee product in January next year for members needing additional relocation funds, although per-project limits, interest rates and eligibility criteria have not been disclosed.