If You Are a Newlywed Couple in Seoul, Check the Changed 'Jeonse Loan'

[Asia Economy Reporter Onyu Lim] Newlywed couples who are renting or planning to rent in Seoul must carefully check the revised 'Newlywed Couple Lease Deposit' system effective from January 1. This is because the combined income limit for couples has been relaxed to a maximum of 97 million KRW, and the interest support rate has been increased by up to 3%.

According to Seoul City on the 11th, applications for this year's newlywed couple lease deposit interest support program have exceeded 1,500 cases. Seoul City's initial goal is to support 10,500 newlywed couples, and with the rapid increase in applications, additional budget procurement is also being considered.

The target beneficiaries of the newlywed couple lease deposit support program are Seoul citizens or those planning to move to Seoul within one month after loan approval, newlywed couples within 7 years of their marriage registration date, or prospective newlyweds planning to marry within 6 months from the date of recommendation letter application. Eligible newlywed couples can receive low-interest support of up to 200 million KRW, within 90% of the lease deposit, when purchasing a house or residential officetel with a lease deposit of 500 million KRW or less within Seoul.

Seoul City has relaxed the biggest hurdle for newlywed couples to enjoy this system?the income criteria?from a combined couple income of 80 million KRW or less to 97 million KRW (150% of the average urban worker income) or less. This means newlywed couples with a combined monthly salary of about 8 million KRW (previously 6.7 million KRW) can apply. The newlywed couple criteria have also been expanded from within 5 years of marriage to within 7 years.

The city's interest support rate has also increased from a maximum of 1.2% per annum to 3.0%. Additional support is available depending on conditions. Prospective newlyweds planning to marry within 6 months from the date of Seoul City's recommendation letter application receive an additional 0.2%, and multi-child families receive benefits (0.2% for one child, 0.4% for two children, and 0.6% for three or more children). The support period has also been extended from a maximum of 8 years to up to 10 years depending on the number of children.

Applications for lease deposit interest support can now be made not only at KB Kookmin Bank but also at KEB Hana Bank and Shinhan Bank (starting in February) within Seoul.

The loan application period for new leases must be within 3 months from the earlier date between the move-in date on the lease contract and the resident registration move-in date. For contract renewals, it must be more than 3 months after the resident registration move-in date and within 3 months from the contract renewal date.

Park Won-soon, Mayor of Seoul, said, "To solve the problems of Seoul outflow, declining marriages, and births caused by the high housing cost burden in Seoul, continuous policy support that newlywed couples can tangibly benefit from, such as 'lease deposit support,' is necessary," adding, "We will continue to discover various policies and projects to strengthen housing stability for newlywed couples and support a fair starting line, and expand related support."

This content was produced with the assistance of AI translation services.