HUG Cuts Jeonse Deposit Return Guarantee Fees by Up to 88%

[Asia Economy Reporter Moon Jiwon] The Housing and Urban Guarantee Corporation (HUG) announced on the 22nd that it will promote measures to strengthen public interest to support housing stability for low-income households.

According to HUG, the guarantee fee rates for the Jeonse Deposit Return Guarantee and the Jeonse Loan Special Guarantee will be reduced by 80% for Jeonse deposits of 200 million KRW or less, and by 70% for deposits exceeding 200 million KRW, thereby alleviating the housing burden for low-income households.

For Jeonse deposits of 200 million KRW or less, and if the tenant is from a multi-child family (three or more children), disabled, etc., considering the existing guarantee fee discount (40%), the maximum guarantee fee discount effect reaches 88%.

To reduce the debt burden on individual debtors, late compensation fees for each guarantee product will be temporarily reduced by 40% to 60% until the end of this year.

Late compensation fees for individual debtors will be reduced as follows: 40% for Jeonse Deposit Return Guarantee (annual 5% → annual 3%), 60% for Jeonse Loan Special Guarantee (annual 5% → annual 2%), and 45% for Housing Purchase Fund Guarantee (annual 9% → annual 5%).

If a tenant who has subscribed to the Jeonse Deposit Return Guarantee requests guarantee execution, HUG will act as an agent for the registration of the tenant’s rights, enhancing tenant convenience.

Until now, tenants had to apply for tenant rights registration themselves to claim the deposit, but going forward, HUG will perform the tenant rights registration application on their behalf.

Additionally, to enhance the stability of housing supply, HUG will temporarily reduce the guarantee fee for housing sales guarantees by 50% and promote prompt refund execution for vulnerable residents in case of sales guarantee accidents.

The guarantee fee rate for the 'Housing Sales Guarantee,' which protects the contract deposit and interim payments of sales contract holders in case of business entity bankruptcy or insolvency, will be reduced by 50% until the end of this year.

Lee Jaegwang, President of HUG, stated, "Through the implementation of these measures to strengthen public interest, we expect to alleviate the housing burden on low-income households, expand the safety net for the low-income economy, and further strengthen the corporation’s public functions."

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