Only at K-Bank, 50 Billion Won in a Month and a Half... Youth Jeonse Monthly Rent Loans Gaining Popularity

Supply Scale Expanded to 4.1 Trillion Won

Reference image / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Hyo-jin] The 'Youth Customized Jeonse and Monthly Rent Loan (Youth Jeonse and Monthly Rent Loan)' launched by financial authorities and banks to stabilize youth housing is gaining popularity.

According to financial authorities and the financial sector on the 27th, the Youth Jeonse and Monthly Rent Loan, launched on May 1 last year with a supply target of 1.1 trillion KRW through an agreement between the Financial Services Commission and Korea Housing Finance Corporation with banks, has exceeded its target as of the 20th, supplying about 1.2 trillion KRW to 25,000 people.

In the case of Korea Kakao Bank (KakaoBank), based on its non-face-to-face platform, approximately 50 billion KRW worth of Youth Jeonse and Monthly Rent Loans were sold as of the 25th, just a month and a half after launching sales on the 12th of last month.

A KakaoBank official said, "Despite launching the product relatively late, interest was high," adding, "It seems to be because it is a product with high demand among young people who prefer non-face-to-face platforms."

The Financial Services Commission has increased the supply scale of the Youth Jeonse and Monthly Rent Loan to 4.1 trillion KRW. A Financial Services Commission official predicted, "More than 60,000 additional youths will be able to benefit in the future." A representative from a commercial bank said, "Regardless of profitability, it seems that banks are highly responsive because it is a product that attracts potential customers for steady future transactions."

The Financial Services Commission plans to expand the number of banks handling the Youth Jeonse and Monthly Rent Loan through non-face-to-face channels for smoother support. The Youth Jeonse and Monthly Rent Loan is a product that supports deposits (up to 70 million KRW) and monthly rent (up to 500,000 KRW per month) at an interest rate in the 2% range for youths aged 34 and under.

So far, the average loan amount per user was 50.09 million KRW for Jeonse loans and 5.91 million KRW (246,000 KRW per month) for monthly rent loans, with an average interest rate of 2.57%, which is 0.33 percentage points lower than the average market Jeonse loan interest rate (2.90%, guaranteed by Korea Housing Finance Corporation). Among users, 28.5% were students or job seekers without income.

A Financial Services Commission official explained, "Considering that these are people who find it difficult to get loans through the financial sector, the actual effect on solving youth housing problems is even greater."

Provided by the Financial Services Commission

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