Busan City, Do You Know the 'Jugeodeundeun Package' for Youth Housing Stability?

Jeonse Deposit Guarantee Fee, Monthly Rent Support, Meomuljari Loan, and Newlywed Loan Interest Support, etc.

Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan City (Acting Mayor Lee Byung-jin) is promoting the ‘Jugeo Dundeun’ policy to help young people facing economic difficulties due to low growth and employment instability secure housing safety.

This policy aims to create conditions for settling in the Busan area by strengthening the housing safety net. This year, four projects will be implemented with a budget of 6.3 billion KRW to support about 7,100 people (households).

The so-called ‘Jugeo Dundeun Package’ includes ▲Youth Safe Jeonse Deposit Return Guarantee Fee Support ▲Monthly Rent Support ▲Stay Loan ▲Newlywed Housing Loan and Interest Support Projects.

▲The Jeonse Deposit Return Guarantee Fee Support project is being promoted to provide a legal safety net for young people, a vulnerable housing group, to recover their jeonse deposits, as cases where landlords fail to return jeonse deposits due to gap investments are frequent.

It has been implemented since September 2020 through a business agreement with the Korea Housing & Urban Guarantee Corporation, the first of its kind nationwide. This year’s project budget is 200 million KRW. Due to positive responses last year, the support target has been significantly expanded to about 3,000 people, and the income criteria for dual-income couples have been raised from an annual income of 50 million KRW or less to 80 million KRW or less.

The support targets are young tenants aged 19 to 34 registered as residents in Busan, with an annual income of 50 million KRW or less (80 million KRW or less for dual-income couples), living in residential housing with a jeonse deposit of 300 million KRW or less.

▲The Monthly Rent Support project has been implemented by Busan City as the first metropolitan-level program nationwide since 2019. The project budget is 3 billion KRW, supporting monthly rent for 3,000 young people for 10 months.

The support target is single-person households aged 18 to 34 residing in Busan. The income criterion is 120% or less of the median income, and housing conditions include a rental deposit of 100 million KRW or less and monthly rent of 600,000 KRW or less.

Homeowners, basic livelihood security recipients, and those participating in government or local government youth housing support policies are excluded from support.

▲The Stay Loan project helps young people who have difficulty saving a lump sum by supporting interest on rental deposit loans (up to 30 million KRW) through Busan City, enabling them to settle stably in the region without the burden of loan interest. The project budget is 82 million KRW, supporting about 100 people.

▲The Newlywed Housing Loan and Interest Support project is also being promoted. This project supports up to 15 million KRW in jeonse deposit loans (within 90% of the rental deposit) at an annual interest rate of 1.9% for 1,000 (prospective) newlywed households in the Busan area.

Unlike last year, this year a preferential interest rate clause of up to 0.2% (0.1% for 1-2 children, 0.2% for 3 or more children) has been newly established for households with children, allowing existing childbearing households to benefit as well.

The eligibility criteria are (prospective) newlywed couples residing in Busan who are non-homeowners within 7 years from the marriage registration date and 3 months before the expected marriage date, with a combined annual household income of 80 million KRW or less.

▲The Jeonse Deposit Return Guarantee Fee Support project accepts applications on a rolling basis. Applications can be submitted from the 17th via the HUG internet guarantee website or by visiting the HUG Busan-Ulsan branch.

▲The Monthly Rent Support project can be applied for from the 23rd to March 16, and ▲the Stay Loan project from the 25th via the Busan Youth Platform. ▲The Newlywed Housing Loan and Interest Support project has been accepting applications at all Busan Bank branches since January, and inquiries can be made through the Busan Bank call center.

Acting Mayor Lee Byung-jin of Busan said, “We will discover and promote various youth-tailored housing support policies so that young people suffering from employment difficulties and hardships due to COVID-19 can live in a stable environment without worrying about housing.”

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