LH Resumes Recruitment of Jeonse Rental Tenants

[Asia Economy Reporter Yoo In-ho] LH announced on the 10th that it will resume recruiting tenants for the Jeonse rental housing, which had been suspended since February due to concerns over the spread of the novel coronavirus infection (COVID-19).

The recruitment volume totals 8,840 units, including 3,840 general units, 3,000 units for the elderly, and 2,000 units for the multi-child family type. Considering the spread of COVID-19 and housing demand, recruitment will proceed sequentially starting from certain regions.

The first phase will accept applications from 18 cities and counties within Chungbuk, Jeonbuk, and Gyeongnam provinces, while other regions will conduct separate recruitments depending on the situation and conditions of each local government. The application period for the first phase is from the 20th to the 29th of this month, and subsequent phases will be announced sequentially later.

This recruitment applies for the first time the newly established multi-child family type, introduced under the government’s “Measures to Strengthen Housing Support including Guarantee of Children's Housing Rights” announced last year.

Households without housing raising two or more minor children, who are recipients of basic livelihood security or belong to the lower-income bracket, can apply as first priority. To prioritize households with many children and poor housing conditions, additional points are awarded based on the number of children and current housing conditions, and the final tenant ranking is determined by the highest score within the priority group.

Revisions to the eligibility criteria for the elderly type have also been reflected. Previously, elderly applicants receiving only housing benefits without livelihood or medical benefits, or those in the lower-income bracket, could only apply as second priority, but from this recruitment, they can apply as first priority.

The Jeonse support amount for the multi-child family type is up to 120 million KRW for two children in the metropolitan area, with an additional 20 million KRW provided per child for three or more children. For the elderly and general types, the amount is 90 million KRW based on the metropolitan area.

Tenants pay a deposit of about 2-5% of the Jeonse support amount and a monthly rent with an interest rate of 1-2% per annum. The interest rate can be reduced by up to 0.5 percentage points depending on the number of minor children. Recipients of livelihood or medical benefits can receive a preferential interest rate reduction of 0.2 percentage points.

The lease period is basically two years, with up to nine renewals possible, allowing a maximum residence period of 20 years.

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