Ministry of Land, Infrastructure and Transport Collaborates with Local Governments and Universities to Implement 'Specialized Jeonse Rental Project'

95% National Funding for Deposit Support, Remaining Covered by Local Governments and Universities
Boeun, Jincheon Counties and Kyung Hee University Pilot Project... LH to Recruit Tenants in March This Year

A foundation has been established to utilize the jeonse rental housing project, where 95% of the jeonse deposit is supported by the government, tailored to the diverse needs of regions and universities.

On the 22nd, the Ministry of Land, Infrastructure and Transport announced that it will implement a ‘specialized jeonse rental housing project’ that combines additional support from local governments and universities with the existing jeonse rental housing project to support local governments in attracting businesses and to resolve the shortage of university dormitories.

Since 2005, the Ministry has been operating the jeonse rental housing project, which provides low-interest support of up to 95% of the deposit regardless of the tenant’s credit. This project has a high satisfaction rate among residents because it offers faster support than other public rental projects and allows them to live in their desired housing. However, it was difficult to operate and manage as it was mainly conducted by the Ministry and Korea Land & Housing Corporation (LH) without local government participation.

Accordingly, the government decided to expand the target of the jeonse rental housing project to local governments struggling to attract businesses due to lack of funds and incentives, and universities facing difficulties in constructing dormitories due to financial burdens. The specialized jeonse rental housing project, which entrusts demand-tailored support and management to local governments and universities, supports 95% of the deposit with national funds, while the remaining 5% of the deposit or monthly rent is supported by local governments and universities.

The first pilot project will be conducted on a scale of 300 units with the participation of Boeun-gun and Jincheon-gun in Chungbuk Province and Kyung Hee University. The Ministry plans to recruit tenants through LH starting early March.

Boeun-gun (80 units) will operate the system by providing the deposit (about 3 million KRW) that workers must pay free of charge, and the monthly rent will be partially supported by the participating small and medium-sized enterprises. The county plans to subsidize part of the loan interest for business stabilization funds to the participating SMEs.

Jincheon-gun (70 units) will provide the deposit burden for workers (about 3 million KRW) free of charge and will review additional support for rent depending on the progress of the project. It plans to provide support funds (1 million KRW for one person, 2.2 million KRW for two or more persons) to workers who move in. Kyung Hee University (150 units) will provide the dormitory deposit (about 2 million KRW) that students must pay free of charge and appoint resident students as on-campus promotional ambassadors, awarding scholarships based on their activities. Various programs such as employment special lectures will also be supported.

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