"Expansion of Jeonse and Monthly Rent Loans"… Government Strengthens Support for Youth Housing Stability

(Data provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 14th that it has prepared measures to strengthen support for youth housing stability in line with the 'Korean New Deal 2.0' promotion plan.

First, support for jeonse (key money deposit) loans for young workers employed at small and medium-sized enterprises (SMEs) will be expanded.

The operation period of the jeonse loan for young workers employed at SMEs, which was scheduled to end in December this year, will be extended by two years until December 2023.

This loan is provided at a fixed annual interest rate of 1.2% up to 100 million KRW for housing with a rental deposit of 200 million KRW or less. As of June this year, 36,141 loans totaling 2.7405 trillion KRW have been issued.

Previously, employment graduates from high school faced loan restrictions due to the age limit of 19 years, but this criterion has been adjusted so that loan applications can now be made from January 1 of the year they turn 19.

Support for youth-exclusive guaranteed monthly rent loans will also be expanded. The target group will be increased to reduce the monthly rent burden for low-income and homeless youth.

The income eligibility requirement for loan applications will be significantly raised from an annual income of 20 million KRW or less to 50 million KRW or less, and the eligible rental housing will be relaxed from monthly rent of 600,000 KRW or less to 700,000 KRW or less.

Additionally, interest-free loans will be supported up to 200,000 KRW per month, and for amounts exceeding 200,000 KRW, ultra-low interest loans at 1% will be applied. The loan limit will also be increased from 400,000 KRW to 500,000 KRW per month.

Baek Seongho, Director of the Housing Fund Division at the Ministry of Land, Infrastructure and Transport, said, "We hope that the announced support measures for jeonse and monthly rent funds will provide practical help for the housing stability of the younger generation."

(Data provided by the Ministry of Land, Infrastructure and Transport)

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