Gwangyang-si Expands Interest Support for Youth Housing Loan Funds

Easing Eligibility Criteria for Newlyweds, Adding Support for Multichild Families, and More

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik] On the 15th, Gwangyang City in Jeonnam announced that it will significantly expand the number of beneficiaries by relaxing the eligibility requirements for the ‘Youth Housing Loan Interest Support Project,’ which is being promoted to reduce the housing cost burden for young people.

The ‘Youth Housing Loan Interest Support Project’ is a program that partially supports loan interest for housing purchase or jeonse (long-term deposit lease) for non-homeowners aged 19 to 39 who reside or plan to reside in Gwangyang City. It has been independently implemented by the city since 2018, the first among basic local governments.

To expand the project’s target beneficiaries, the city completed consultations with the Ministry of Health and Welfare regarding social security changes and newly reflected criteria such as target housing prices, newlywed couple standards, and multi-child family standards.

The main changes are threefold. First, to proactively respond to the recent continuous rise in housing prices, the target housing price criteria were changed from the previous purchase price of 300 million KRW or less and jeonse price of 200 million KRW or less to a purchase price of 500 million KRW or less and jeonse price of 300 million KRW or less.

Second, the newlywed couple criteria were relaxed from within 5 years of marriage registration to within 7 years.

Newlywed couples must meet income criteria of 50 million KRW or less for single-income households, 75 million KRW or less for dual-income households, and 80 million KRW or less for households with one child.

Third, to foster a childbirth-friendly social atmosphere, a multi-child family criterion was added for support.

Multi-child families are households with two or more minor children, with income criteria of 90 million KRW or less for two children and 100 million KRW or less for three or more children.

The city expects demand to increase with new housing supply and plans to significantly expand the project budget in 2022.

Cho Sunmi, Director of Strategic Policy, said, “With the relaxation of the youth housing loan interest support criteria, many young people who were previously excluded from support are now eligible,” adding, “The city will continue to discover projects suitable for local conditions and strive to improve the quality of life for young people.”

Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik hss79@asiae.co.kr

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