Jung Won-oh, Seongdong-gu Mayor, Successfully Establishes 'Half-Price Dormitory' to Support University Students' Housing Stability

Students pay only 1 million won deposit, 250,000 won monthly rent, and utility bills at about half the average market price... Seongdong-gu, LH Corporation, Hanyang University, and landlords collaborate for half-price one-room housing support... Recruiting 13 residents for 'Seongdong Hanyang Win-Win Dormitory' from 26 to 30

Exterior view of Sangsaeng Dormitory No. 1

[Asia Economy Reporter Jongil Park] Jung Won-oh, Mayor of Seongdong-gu (photo), has successfully established a project aimed at reducing the housing cost burden for university students as a model case.

Seongdong-gu, Korea Land and Housing Corporation (LH), Hanyang University, and landlords cooperated to adjust the average market rent near Hanyang University: landlords increased the deposit from 10 million KRW to 30 million KRW while lowering the monthly rent from 500,000 KRW to 400,000 KRW for one-room apartments.

To reduce students' deposit burden, LH utilized the Housing and Urban Fund to provide loans of 29 million KRW at an annual interest rate of 1%. Seongdong-gu and Hanyang University each support 75,000 KRW monthly, totaling 150,000 KRW in rent assistance. This mutual cooperation and win-win approach is recognized as a model case for solving housing issues.

Seongdong-gu is recruiting 13 residents for the ‘Seongdong-Hanyang Win-Win Dormitory’ from the 26th to the 30th.

Following the recruitment of 21 residents for the first branch earlier this year, the district opened the 2nd, 3rd, and 4th branches this month, securing 13 additional housing units. Residents only need to pay a deposit of 1 million KRW and a monthly rent of 250,000 KRW, along with utility fees, which is about half the average market price.

The ‘Win-Win Dormitory’ offers students affordable housing costs below market rates, while local landlords operating rental businesses near the university reduce vacancy rates and secure stable rental income. Since its inception, a total of 63 youth households have moved in, showing high satisfaction among local residents and students, and the operation is progressing smoothly.

Launched in March 2019 as the first of its kind nationwide, the ‘Win-Win Dormitory’ was created to resolve conflicts between Hanyang University and local residents operating one-room apartments near the university, which arose after Hanyang University announced plans in 2015 to build dormitories accommodating about 1,000 students.

Seongdong-gu, Korea Land and Housing Corporation (LH), Hanyang University, and landlords cooperated to adjust the average market rent near Hanyang University: landlords increased the deposit from 10 million KRW to 30 million KRW while lowering the monthly rent from 500,000 KRW to 400,000 KRW for one-room apartments.

To reduce students' deposit burden, LH utilized the Housing and Urban Fund to provide loans of 29 million KRW at an annual interest rate of 1%. Seongdong-gu and Hanyang University each support 75,000 KRW monthly, totaling 150,000 KRW in rent assistance. This mutual cooperation and win-win approach is recognized as a model case for solving housing issues.

In a reality where young people juggle part-time jobs to cover high housing costs and tuition fees, the so-called ‘half-price dormitory’ promotes housing stability. Especially considering the high proportion of single-person households concentrated in Sageun-dong, the program will continue to expand and serve as a stepping stone for the independence of local youth.

Jung Won-oh, Mayor of Seongdong-gu, said, “The Win-Win Dormitory has been successfully established after three years of operation,” adding, “We plan to actively promote realistic and systematic support policies that meet their needs in connection with the ‘Comprehensive Support Package for Single-Person Households’ project, which will be launched this month.”

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