Youth Support Jeonse Loan Expanded to Age 34

[Asia Economy Reporter Yoo In-ho] The government is expanding the age eligibility for the youth-exclusive Butimok Jeonse Loan, aimed at stabilizing housing for young people, from under 25 years old to up to 34 years old.

On the 26th, the Ministry of Land, Infrastructure and Transport discussed the "Youth Life Improvement Plan" together with the Office for Government Policy Coordination and central administrative agencies at the 102nd National Policy Issue Inspection and Coordination Meeting.

The Ministry of Land, Infrastructure and Transport has prepared housing support measures that provide financial assistance to further reduce housing cost burdens and supply affordable public housing in excellent locations such as areas near subway stations, so that young people can focus on their studies and employment without worrying about housing.

First, the age eligibility for the low-interest youth-exclusive Butimok Jeonse Loan will be expanded from under 25 years old to up to 34 years old. The applicable interest rates and loan limits will also be adjusted.

For single household heads under 25 years old, interest rates will be lowered to ease financial burdens, while for the newly expanded youth group, the deposit and loan limits for eligible housing will be raised to strengthen financial support.

Specifically, for single household heads under 25 years old, the conditions are a deposit of 50 million KRW, a loan limit of 35 million KRW, and an interest rate of 1.2?1.8%. For other youth, the deposit is 70 million KRW, the loan limit is 50 million KRW, and the interest rate is 1.8?2.4%.

With this system improvement, the average interest rate for the youth-exclusive Butimok loan is expected to decrease by 0.46 percentage points, reducing the annual interest burden per household by 240,000 KRW. It is expected that an additional 11,000 households will benefit, increasing from the 98,000 households supported last year through youth fund products.

The Ministry of Land, Infrastructure and Transport will also actively promote the remodeling project of old goshiwon (small dormitory-style rooms). Reflecting the voices of young people who want various types of youth housing in convenient and well-located areas, 10,000 rental housing units remodeled from old goshiwon near subway stations (1,000 units this year) will be supplied by 2025 at 30?50% below market price.

Starting this year, the purchase price per unit for public remodeling rental housing will be raised from 95 million KRW to 150 million KRW, allowing buildings near prime subway station areas to be supplied as public rental housing. To ensure abundant supply, remodeling targets will include not only old houses and quasi-houses (officetels, goshiwon, etc.) but also old motels, offices, and jjimjilbang (Korean sauna). Relatedly, the Public Housing Special Act and its enforcement decree will be revised within this year.

A Ministry of Land, Infrastructure and Transport official said, "We will continuously reflect the opinions of young people to support them so that they can focus on studies and employment without worries about housing," and added, "By improving deteriorated buildings and urban areas pleasantly, living environments will also be enhanced."

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