Seoul City to Recruit 2,500 for 10-Year Interest-Free Support Covering 30% of Jeonse and Monthly Rent Deposits

[Asia Economy Reporter Yuri Kim] Seoul City announced on the 15th that it will recruit 2,500 applicants for the second round this year of the 'Deposit Support Long-term Safe Housing,' which provides interest-free support for up to 10 years covering 30% of the jeonse or monthly rent deposit (50% if the deposit is 100 million KRW or less, up to a maximum of 45 million KRW) to stabilize housing for non-homeowners and newlyweds. Of the total, 1,000 applicants, accounting for 40%, will be selected through a special supply for newlyweds. Newlyweds can receive support for deposits up to 60 million KRW.

Seoul City and Seoul Housing & Communities Corporation (SH Corporation) announced on the 15th that they have posted the recruitment notice on their website and are accepting applications for tenants. Online applications will be accepted from June 29 to July 3, and for the elderly and disabled only, applications will be accepted until July 7. To prevent the spread of COVID-19, visit dates will be designated by the autonomous districts of the applicant's residential area. The announcement of selected tenants is scheduled for August 28.

The Deposit Support Long-term Safe Housing is a public rental housing program by Seoul City that supports jeonse or monthly rent deposits to reduce housing cost burdens, allowing tenants to find and live in housing in their desired areas. If the deposit exceeds 100 million KRW, 30% of the deposit amount is supported up to a maximum of 45 million KRW (60 million KRW for newlyweds). If the deposit is 100 million KRW or less, 50% of the deposit amount is supported up to a maximum of 45 million KRW.

The lease contract is signed jointly by the homeowner (lessor), tenant, and Seoul Housing & Communities Corporation as co-lessees, with the deposit support provided in this form. Contracts are also possible if the tenant already resides in a qualifying house. Support is available for up to 10 years with renewals every two years. Upon renewal, the city supports 30% of the deposit increase within 10%, and the brokerage fee payable by the lessor (homeowner) is covered by city funds.

Eligible applicants are non-homeowning household members residing in Seoul as of the recruitment announcement date, with a monthly average income of 100% or less of the urban worker household average (120% or less for newlyweds). Owned real estate must be worth 215.5 million KRW or less, and vehicles must have a current value of 27.64 million KRW or less. The monthly average income at 100% for an urban worker household is approximately 6.23 million KRW for a four-person household.

Eligible housing includes pure jeonse houses and monthly rent houses with deposits. The deposit limit for single-person households is up to 290 million KRW for the sum of the basic deposit and jeonse conversion deposit in monthly rent housing or the jeonse deposit in pure jeonse housing. For households of two or more, the limit is up to 380 million KRW. The exclusive area of eligible housing is 60㎡ or less for single-person households and 85㎡ or less for households of two or more.

In addition to the city's deposit support, Seoul City provides selected tenants with information on loan products linked to long-term safe housing to help them obtain jeonse loans from commercial banks. For more details, inquiries can be made to the Seoul Housing & Communities Corporation call center.

After the application period, income and other screenings will be conducted to select candidates for document verification and tenants. Only those subject to document verification will undergo the verification process. After the tenant announcement, applications for rights analysis review are possible, and contracts can be signed by August 31, 2021, following the rights analysis review.

Ryu Hoon, Head of the Housing and Architecture Headquarters of Seoul City, said, "Through the long-term safe housing system, the city is reducing housing cost burdens by enabling non-homeowners to rent and live in housing within their living areas." He added, "For this recruitment, considering COVID-19 prevention and citizen safety, online applications are prioritized, and for in-person applications, visit dates are designated by residential area to disperse visits."

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