Jeonse Deposit Safety Loan Guarantee, Subscription Criteria Set at 700 Million KRW for Seoul Metropolitan Area and 500 Million KRW for Non-Metropolitan Areas

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] The Korea Housing & Urban Guarantee Corporation (HUG) relaxed the deposit requirements for its Jeonse loan guarantee on the 27th.

HUG announced that starting January 3rd next year, the Jeonse deposit criteria for the Jeonse Loan Safety Guarantee will be raised to 700 million KRW in the metropolitan area and 500 million KRW in non-metropolitan areas.

This is an increase of 200 million KRW and 100 million KRW from the current 500 million KRW in the metropolitan area and 400 million KRW in non-metropolitan areas, respectively.

The Jeonse Loan Safety Guarantee is a guarantee product that resolves the risk of non-return of deposits at the end of a Jeonse contract and supports access to low-interest Jeonse loans from banks.

HUG explained, "We improved the system to protect tenants who were exposed to blind spots due to not meeting the Jeonse deposit criteria."

However, the maximum loan guarantee limit remains the same as the current level (400 million KRW in the metropolitan area and 320 million KRW in non-metropolitan areas).

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