Daejeon City Supports Housing Lease Deposits to Reduce Youth Housing Cost Burden

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City is reducing the housing cost burden for local youth through support for housing lease deposit loans.

The city announced on the 19th that it is recruiting applicants for the ‘Youth Housing Lease Deposit Loan Support Project.’ The loan support project will officially begin next month, and participation applications can be made through the city’s website starting from the 1st of next month.

The city accepts applications on a rolling basis from the 1st to the 10th of each month and selects recipients after eligibility screening based on age, income, and other criteria. Selected youth can proceed with loan screening at Hana Bank branches with the city’s loan recommendation.

The project targets students, job seekers, office workers, self-employed individuals, freelancers, and other young adults starting their careers. The loan support reduces the interest rate from 3.8% (down 1%p from last year’s 4.8%) by having the city cover 2.9%, lowering the actual loan burden for youth to 0.9%.

Additionally, youth who plan to sign a housing contract with a lease deposit of 150 million KRW or less in Daejeon are eligible, including those who have moved from other cities. The loan support covers not only jeonse (lump-sum deposit lease) and monthly rent housing but also residential officetels, according to the city.

Starting this year, the city will also conduct a rental-related education program for prospective borrowers called ‘Youth Housing Lease Loan Support Mandatory Education.’ The program aims to minimize the risk of lease contract cancellations due to loan screening rejections at banks and is scheduled to begin in May.

‘Youth Housing Lease Loan Support Mandatory Education’ is a collaborative effort between the city and the Korea Legal Aid Corporation (Housing Lease Dispute Mediation Committee Daejeon Branch), providing education on rental knowledge and related laws.

Kim Ga-hwan, head of the Youth Policy Division of the city, said, “The housing cost burden on youth inevitably affects their overall living environment. We hope that improving residential conditions, such as easing jeonse and monthly rent costs for young adults starting their careers, will help youth become independent and serve as an incentive to retain youth who might otherwise leave for other cities.”

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