Dormitory-Style Youth Housing Also Eligible for Jeonse Loan... Reduced Monthly Rent Burden

Loans from Woori Bank, IBK, and Shinhan Bank

Korea Land and Housing Corporation (LH) has introduced customized shared housing for youth to stabilize housing for university students and young adults. Photo by Moon Honam munonam@

Youths moving into dormitory-style youth housing, which is officially designated as dormitories, will now be able to receive low-interest jeonse deposit loans.

On the 6th, the Ministry of Land, Infrastructure and Transport announced that it has revised related regulations to allow youths residing in dormitory-style youth housing to obtain jeonse loans from the Housing and Urban Fund (Youth Support Jeonse Loan) or from commercial banks.

Introduced in 2019, dormitory-style youth housing is a type of youth housing purchased by Korea Land and Housing Corporation (LH) in urban areas to address the shortage of university dormitories and support youth housing, offered at prices below 50% of market rates. LH dormitory-style youth housing is supplied nationwide at 41 locations with about 2,100 units.

Most young tenants prefer to increase their deposit to reduce monthly rent burdens. However, until now, youth housing officially designated as dormitories did not have separate registration, making it impossible to obtain jeonse loans, causing dissatisfaction among prospective tenants.

Accordingly, the Ministry of Land, Infrastructure and Transport coordinated with related organizations such as the Housing and Urban Guarantee Corporation (HUG), commercial banks, and LH to enable jeonse loans for residents of dormitory-style youth housing.

The implementation rules for fund loan operations were amended to include dormitories as eligible for Housing and Urban Fund jeonse loans, allowing youth residents of dormitories to receive affordable fund loans from Woori Bank, Industrial Bank of Korea, and Shinhan Bank starting this month.

Even if dormitory residents are not eligible for fund loans, the HUG jeonse guarantee manual was revised to allow them to receive jeonse loans from commercial bank funds, enabling Woori Bank to offer jeonse loans starting from the 17th.

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