"30% Deposit Support" Seoul City to Recruit 5,000 for Long-term Safe Housing This Month

Maximum Jeonse Deposit of 45 Million KRW, Up to 10 Years Interest-Free Support
40% of Tenants (2,000 People) Are Newlyweds... Up to 60 Million KRW
Tenant Recruitment from March 19 to 31... Applications Only Online Due to COVID-19

[Asia Economy Reporter Yuri Kim] The Seoul Metropolitan Government is recruiting 5,000 applicants for the 'Deposit Support Long-term Secure Housing' program, which provides interest-free support of 30% of the jeonse or monthly rent deposit, up to a maximum of 45 million KRW, for up to 10 years to stabilize housing for non-homeowners and newlywed couples.

Among the applicants, 40%, or 2,000 people, will be selected under a special quota for newlywed couples. Newlywed couples can receive deposit support up to 60 million KRW.

The Seoul Metropolitan Government and Seoul Housing & Communities Corporation (SH Corporation) announced on the 1st that they will post the recruitment notice on their website on the 2nd and accept online applications from March 19 to 31. The successful applicants will be announced on May 22.

The Deposit Support Long-term Secure Housing is a public rental housing program by the Seoul Metropolitan Government that supports jeonse or monthly rent deposits so that tenants can rent and live in houses in their desired areas, thereby reducing housing cost burdens. Since its introduction in 2012, applications have been accepted annually, and as of the end of 2019, a total of 9,974 households have been supported.

If the jeonse or monthly rent deposit exceeds 100 million KRW, 30% of the deposit amount will be supported up to a maximum of 45 million KRW (60 million KRW for newlywed couples). If the deposit is 100 million KRW or less, 50% of the deposit amount will be supported up to a maximum of 45 million KRW.

The lease contract is jointly signed by the homeowner, tenant, and SH Corporation, with the deposit support provided in this format. Contracts are also possible if the tenant already resides in a qualifying house. Support is available for up to 10 years with renewals every two years. Upon renewal, the city supports 30% of any deposit increase within 10%, and brokerage fees payable by the landlord (homeowner) are covered by city funds.

Applicants must be non-homeowning household members residing in Seoul as of the recruitment announcement date, with a monthly average income of 100% or less of the urban worker household average (120% or less for newlywed couples). Owned real estate must be valued at 215.5 million KRW or less, and vehicles must have a current value of 27.64 million KRW or less.

The monthly average income at 100% of urban worker households is approximately 2.65 million KRW for one-person households, 4.38 million KRW for two-person households, 5.63 million KRW for three-person households, and 6.23 million KRW for four-person households.

Eligible housing includes pure jeonse houses and monthly rent houses with deposits. The deposit limit for one-person households is up to 290 million KRW for the sum of the basic deposit and the jeonse conversion deposit in monthly rent houses or the jeonse deposit in pure jeonse houses. For households of two or more, the limit is up to 380 million KRW. The exclusive area of eligible housing is 60㎡ or less for one-person households and 85㎡ or less for households of two or more.

In addition to the city’s deposit support, selected applicants are provided with information on loan products linked to the Long-term Secure Housing program to help them obtain jeonse loans from commercial banks.

Meanwhile, to prevent the spread of COVID-19, in-person application submissions are not accepted; applications can only be submitted online. After the application period, income and other eligibility reviews will be conducted to select applicants and those required to provide additional documentation, with document verification carried out only for those selected. After the announcement of successful applicants, rights analysis review applications can be submitted, and contracts can be completed by June 30, 2021, following the rights analysis review.

Ryu Hun, Director of the Housing and Architecture Headquarters of Seoul City, said, "Through the Long-term Secure Housing program, Seoul is reducing housing cost burdens by enabling non-homeowners to rent and live in houses within their living areas." He added, "Considering citizen safety, we have significantly increased the number of applicants this time, and we look forward to many citizens applying."

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