Youth Lease Deposit Loan Interest Support... Busan City Implements 'Meomuljari Loan' to Ease Youth Housing Cost Burden

Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Busan City is implementing the ‘Meomuljari Loan’ to support young people by easing their housing cost burden and creating a stable housing environment through interest support on rental deposit loans.

The ‘Meomuljari Loan’ is a project where the Korea Housing Finance Corporation guarantees the full amount of the rental loan, Busan Bank provides deposit loans up to 100 million KRW at an annual interest rate of 1.5%, and Busan City supports the loan interest up to 1.5 million KRW per year for a maximum of 4 years to young people.

The ‘Meomuljari Loan’ recruits applicants quarterly except for the 4th quarter, with 200 people supported in the 1st quarter and a total of 1,000 people supported this year.

Applications are accepted from the 14th of this month to March 6th, and the eligible applicants are young household heads aged 19 to 34 who reside in Busan City as of the application date and do not own a home.

Applicants must meet conditions such as having an annual income of 40 million KRW or less, either individually or combined with their spouse, and paying at least 5% of the deposit after signing the lease contract.

Eligible housing includes houses and residential officetels located in Busan City with rental deposits of 200 million KRW or less and a jeonse-to-monthly rent conversion rate of 6.1% or less.

Detailed information can be found on the Youth Policy Platform.

This project has expanded the range of eligible applicants by removing the previous requirement of ‘owning one house under the parents’ name’ among the qualification conditions.

Homeowners, basic livelihood security recipients, participants in government housing support projects, and those who have previously received the Meomuljari Loan are not eligible to use the Meomuljari Loan.

Park Hyung-jun, Mayor of Busan City, said, “This year, we have expanded the scale of support and the range of eligible applicants so that more young people can benefit,” and added, “We will continue to expand and promote projects that can empower young people.”

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