Gwangju City Implements Interest Support Program for Youth Housing Lease Deposits

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 13th that it will implement the ‘Youth Housing Lease Deposit Interest Support Project’ to alleviate the housing cost burden for local youth who find it difficult to save a large sum of money.

The support targets are non-homeowners aged 19 to 39 residing in Gwangju, including university (graduate) students, job seekers, and workers who meet the annual income criteria.

The loan limit is up to 90% of the housing lease deposit, with a maximum of 70 million KRW. Eligible housing includes jeonse (lump-sum deposit lease) and monthly rent housing with lease deposits of 150 million KRW or less within Gwangju city, as well as residential officetels. The loan period is 2 years and can be extended once for up to an additional 2 years.

Gwangju City has signed a tripartite business agreement with Korea Housing Finance Corporation and Gwangju Bank to facilitate loans through Gwangju Bank and support 2% annual interest on the jeonse and monthly rent lease deposit loans.

Additionally, Korea Housing Finance Corporation provides housing finance credit guarantees for the loans, while Gwangju Bank develops loan products and handles loan execution.

Youth wishing to apply for the loan can do so through the Gwangju City website starting from the 27th.

After Gwangju City conducts eligibility screening based on age, income, and other criteria and recommends candidates, loan screening will be conducted at 76 Gwangju Bank branches.

This new project was prepared as part of housing stepping stone policies that resonate strongly with job seekers, young workers, and university (graduate) students. In particular, considering that Gwangju youth have a higher proportion of monthly rent and jeonse housing compared to other regions, the city decided to support loans for jeonse and monthly rent deposits, which pose a significant burden during the early stages of social entry.

Loans are available to young workers with low income, job seekers, or university (graduate) students with no income, and through interest support, the borrower’s interest burden is reduced, thus expecting a practical effect in reducing housing costs.

Son Ok-su, head of the Youth and Adolescents Division of Gwangju City, said, “The Youth Housing Lease Deposit Interest Support Project is expected to stabilize the housing life of Gwangju youth and serve as a ladder of hope to promote youth activities,” and added, “We ask for the active interest and applications from young people.”

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