This Year, 41,000 Jeonse Rental Housing Units Released... Multi-Child Program Starts on the 1st of Next Month

Online Application for Multi-Child Families Starts from Next Month 1st...Continuous Recruitment for Newlyweds and Youth
Deposit Support Limit Increased and Online Submission Expanded from This Year...Enhancing Convenience for Applicants

[Asia Economy Reporter Kangwook Cho] Starting from the 1st of next month, applications for jeonse rental housing for multi-child families will begin. This year, a total of 41,000 units will be supplied, with some increases in the jeonse deposit support limits by region and an expansion of online applications.

The Ministry of Land, Infrastructure and Transport announced on the 21st that it will begin recruiting tenants for jeonse rental housing in 2021 for newlyweds, youth, multi-child families, and elderly households.

Jeonse rental housing is a system where public housing providers such as the Korea Land and Housing Corporation sign jeonse contracts with private housing owners so that non-homeowning households in urban areas can live stably in their current living areas, and then re-rent the housing to tenants at affordable rates. This year, a total of 41,000 units will be supplied.

Starting this year, to reduce housing cost burdens, the jeonse deposit support limits will be partially raised by region, and online applications will be expanded and implemented for tenant convenience.

The deposit support amount for general and elderly types will be raised to KRW 110 million in the metropolitan area (KRW 90 million in 2020) and KRW 80 million in metropolitan cities (KRW 70 million in 2020). For newlywed I and multi-child types, support will be increased to KRW 135 million in the metropolitan area (KRW 120 million in 2020) and KRW 100 million in metropolitan cities (KRW 95 million in 2020).

Considering the high demand for online applications from youth, newlyweds, and multi-child families, nationwide online applications will be implemented starting this year.

Specifically, 9,000 units of newlywed jeonse rental housing type I and 5,000 units of type II will be supplied. Newlywed jeonse rental housing is available to (prospective) newlywed couples within 7 years of marriage who are members of non-homeowning households, single-parent families with children under 6 years old, or married households, and is divided into newlywed type I and II based on income criteria.

Newlywed type I applicants must have a monthly average income of 70% or less of the previous year's urban worker household average monthly income by household size (90% or less for dual-income households). For a 3-person household, this means a monthly average income of KRW 3.94 million last year, total assets of KRW 288 million, and a car valued at KRW 24.68 million or less.

The jeonse deposit support limit is KRW 135 million in the metropolitan area, KRW 100 million in metropolitan cities, and KRW 85 million in other regions. Tenants pay a tenant burden deposit of 5% of the jeonse support amount and monthly rent calculated on the interest (1-2% annually) on the supported amount (95% of the jeonse deposit).

Newlywed type II applicants must have a monthly average income of 100% or less of the previous year's urban worker household average monthly income by household size (120% or less for dual-income households). For a 3-person household, this means a monthly average income of KRW 5.63 million last year, total assets of KRW 288 million, and a car valued at KRW 24.68 million or less.

The jeonse deposit support limit is KRW 240 million in the metropolitan area, KRW 160 million in metropolitan cities, and KRW 130 million in other regions. Tenants pay a tenant burden deposit of 20% of the jeonse support amount and monthly rent calculated on the interest (1-2% annually) on the supported amount (80% of the jeonse deposit).

Additionally, the interest rate applied to monthly rent calculation is reduced by up to 0.5 percentage points depending on the number of minor children (0.2%p for 1 child, 0.3%p for 2 children, 0.5%p for 3 or more children) to reduce housing cost burdens for families with children.

For youth jeonse rental housing, 10,500 units will be supplied. The youth type is for non-homeowning university students, job seekers (within 2 years after graduation), and those aged 19 to 39. Priority is given to recipients of livelihood, medical, and housing benefits, low-income households, and children of single-parent families. Second priority is given to those whose own and parents' monthly average income is below the previous year's urban worker household average monthly income by household size and who meet certain asset requirements. For a 3-person household, this means a monthly average income of KRW 5.63 million last year, total assets of KRW 288 million, and a car valued at KRW 24.68 million or less.

In this recruitment, applications will be accepted only from first-priority applicants who urgently need housing support, considering tenant demand. However, depending on application and move-in results, second-priority recruitment may also be considered.

The jeonse deposit support limit is KRW 120 million in the metropolitan area, KRW 95 million in metropolitan cities, and KRW 85 million in other regions. Tenants pay a tenant burden deposit of KRW 1 million (KRW 2 million for second priority) and monthly rent calculated on the interest (1-2% annually) on the supported amount (jeonse deposit minus tenant burden deposit). However, first-priority tenants and second-priority tenants with monthly average income below 50% or with disabilities receive a preferential interest rate of 0.5 percentage points to reduce housing cost burdens for low-income youth.

For multi-child jeonse rental housing, 2,500 units will be supplied. The multi-child type is for non-homeowning households with two or more minor children, with monthly average income of 70% or less of the previous year's urban worker household average monthly income and meeting asset requirements for national rental housing. For a 4-person household, this means a monthly average income of KRW 4.36 million last year, total assets of KRW 288 million, and a car valued at KRW 24.68 million or less.

Among applicants, recipients and low-income households are given first priority, and other households second priority. If there is competition within the same priority, move-in order is determined based on the number of children and current housing conditions.

The jeonse deposit support amount is up to KRW 135 million in the metropolitan area, KRW 100 million in metropolitan cities, and KRW 85 million in other regions (based on two children). For three or more children, an additional KRW 20 million per child is provided. For example, for three children, KRW 155 million, and for four children, KRW 175 million (metropolitan area limits) are supported.

Tenants pay a tenant burden deposit of 2% of the jeonse support amount and monthly rent calculated on the interest (1-2% annually) on the supported amount (98% of the jeonse deposit). Additionally, the interest rate applied to monthly rent calculation is reduced by up to 0.5 percentage points depending on the number of minor children (0.2%p for 1 child, 0.3%p for 2 children, 0.5%p for 3 or more children), and a preferential interest rate of 0.2%p is provided for recipients of livelihood and medical benefits to reduce rent burdens for child-rearing families and the lowest income groups.

For general jeonse rental housing, 10,000 units and 4,000 units for the elderly will be supplied. The general and elderly types are for members of non-homeowning households whose monthly average income is 50% or less of the previous year's urban worker household average monthly income and who meet asset requirements for permanent rental housing. As of last year, this means a monthly average income of KRW 1.32 million for a single-person household, KRW 2.19 million for two persons, KRW 2.81 million for three persons, total assets of KRW 200 million, and a car valued at KRW 24.68 million or less. However, those urgently needing housing support such as emergency welfare recipients (requiring local government recommendation) are given priority for move-in.

The jeonse deposit support limit is KRW 110 million in the metropolitan area, KRW 80 million in metropolitan cities, and KRW 60 million in other regions. Tenants pay a tenant burden deposit of 5% of the jeonse support amount and monthly rent calculated on the interest (1-2% annually) on the supported amount (95% of the jeonse deposit).

Applicants who have difficulty raising the deposit (first priority qualification, limited to emergency support recipients) can choose a rental condition that lowers the tenant burden deposit from 5% to 2% of the jeonse support amount at the time of contract. Additionally, a preferential interest rate of 0.2%p is provided for recipients of livelihood and medical benefits when calculating monthly rent to reduce rent burdens for the lowest income groups. Preferential interest rates based on the number of children (0.2%p for 1 child, 0.3%p for 2 children, 0.5%p for 3 or more children) can also be applied cumulatively.

For more details, please refer to the announcements posted on the websites of each public housing provider. Prospective tenants can apply through the Korea Land and Housing Corporation subscription center or their local community service centers.

Kim Jeonghee, Director of Housing Welfare Policy at the Ministry of Land, Infrastructure and Transport, said, "Jeonse rental housing supporting various vulnerable groups such as youth, newlyweds, multi-child families, and the elderly is expected to see high demand this year with the increased deposit limits. We will continue to pay close attention to and improve all aspects including tenant selection, housing search, move-in, and management to enhance tenant satisfaction."

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