<주금공·NH Nonghyup·Seongnam City "Seongnam's Homeless Youth Supported with 90% of Rental Deposit">

From the 5th, Jeonse Loans Up to 50 Million KRW Available
Full Loan Guarantee and Lowest Guarantee Fee Rate (Annual 0.02%) Applied

On the 1st, at Seongnam City Hall in Gyeonggi-do, a commemorative photo was taken after the 'Seongnam City Youth Housing Lease Deposit Interest Support Business Agreement Ceremony' featuring Choi Jun-woo, President of the Korea Housing Finance Corporation (from the left), Eun Soo-mi, Mayor of Seongnam, and Oh Seung-chul, Head of NH Nonghyup Bank Seongnam Branch. Photo by Korea Housing Finance Corporation

[Asia Economy Reporter Song Seung-seop] Korea Housing Finance Corporation announced on the 1st that it has signed a 'Seongnam City Youth Housing Lease Deposit Support Project Business Agreement' together with Seongnam City and NH Nonghyup Bank.

According to the agreement, single-person households aged 19 to 34 without housing residing in Seongnam City, Gyeonggi Province, can borrow up to 50 million KRW within 90% of the lease deposit as jeonse funds. Eligible applicants can be confirmed on the Seongnam City website, and certain requirements such as income criteria and target housing must be met. The actual product will be launched on the 5th.

The Housing Finance Corporation will provide full guarantee on the loan amount and apply the lowest guarantee fee rate (0.02% per annum). Seongnam City plans to support loan interest up to 3 percentage points per annum on loans within 50 million KRW. Selected youth in Seongnam City will be able to receive interest support of up to 1.5 million KRW annually. Considering that the average interest rate on jeonse loans is currently below 3%, this effectively amounts to an interest-free loan.

Meanwhile, through this agreement, the Housing Finance Corporation has supplied jeonse and monthly rent fund guarantee agreement products to a total of 18 local governments (11 metropolitan and 7 basic local governments). From 2017 to May 2021, the cumulative supply amount of local government agreement jeonse and monthly rent fund guarantees reached approximately 7.3 trillion KRW. On average, guarantees of 49 million KRW per household were supplied to youth, and 159 million KRW on average to newlyweds.

President Choi Jun-woo emphasized, "I hope this agreement will help young households struggling with housing costs to nurture their dreams and hopes in a stable home," and added, "We will continue to actively cooperate with local governments going forward."

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