HUG Donates 200 Million KRW to Donghaean Wildfire Area... Special Support for Jeonse Deposit Guarantee

[Asia Economy Reporter Ryu Tae-min] The Korea Housing & Urban Guarantee Corporation (HUG) announced on the 17th that it will donate 200 million KRW to the wildfire-affected areas on the East Coast and provide special support for jeonse deposit guarantees.

The donation will be used to support disaster recovery for victims and to provide temporary housing. For vulnerable groups, additional support will be provided for housing and livelihood stabilization costs to aid in recovery efforts. The special jeonse deposit guarantee will target tenants whose homes were damaged by the wildfire and is scheduled to be implemented within this month.

For the jeonse deposit return guarantee, the guarantee fee will be fully waived, and the safe jeonse loan guarantee will be discounted by about 40% to alleviate the financial burden on tenants in the affected areas. Additionally, the requirement to apply for the guarantee before half of the lease period has passed will be relaxed, allowing applications regardless of the lease term.

To facilitate tenant relocation, the guarantee execution procedures and reviews will be simplified, reducing the deposit payment period from the existing 60 days to 5 days. The loan guarantee limit for jeonse loans will also be increased from 80% to 90% of the deposit to support tenants in securing jeonse funds.

To ease the financial burden on landlords in the affected areas, measures to relax subrogation claims will be implemented. If HUG pays the deposit to the tenant on behalf of the landlord, the subrogation claim against the landlord will be deferred for one year, and delay compensation fees will also be waived.

Kwon Hyung-taek, President of HUG, stated, “We will do our best to support the recovery and housing stability of residents in the affected areas through the donation and special jeonse deposit guarantee support.”

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