Sejong-si Applies '0.9% Interest Rate' for Youth Jeonse Loan Support

Conceptual diagram of the 'Jeonse Deposit Loan Interest Support' project for local youth in Sejong City. Provided by Sejong City.

[Asia Economy (Sejong) Reporter Jeong Il-woong] Sejong City will support the interest on jeonse deposit loans to reduce the housing cost burden for local youth and help them settle in housing.

The city announced on the 9th that it has signed a business agreement with Korea Housing Finance Corporation and Hana Bank to launch a product that lends up to 70 million KRW in deposits and supports part of the interest for young households aged 19 to 34 without home ownership.

The deposit loan is available with a 2-year maturity lump-sum repayment condition and can be extended up to 6 years (2 extensions possible). The loan interest rate is a fixed 3.5%, of which the city covers 2.6%, so the actual loan interest burden for the youth applicant is 0.9%.

Eligible applicants are young households who are registered residents in Sejong as of the announcement date (9th) or plan to move to the city, with an individual annual income of 45 million KRW or less (60 million KRW or less combined for newlyweds). The jeonse housing must be a house or officetel registered in the building register with a price of 200 million KRW or less.

Applications can be submitted online via the Sejong Youth Hope Tomorrow Center website or by visiting the Youth Hope Tomorrow Center from the 23rd to the 27th.

To prevent duplicate support, recipients of housing benefits, residents of public rental housing, and participants in similar housing projects promoted by the government (city) are excluded. Also, those who have signed lease contracts with public officials or their parents cannot apply.

The total number of recruits is 88. Selected applicants must sign a housing lease contract and execute the loan within 90 days, and must report their move-in within one month from the loan execution date to avoid cancellation of selection.

During the loan screening process, the loan limit may vary depending on personal credit and mortgage registration on the leased property, so the city recommends consulting at one of the four Hana Bank Sejong branches in the area.

For more detailed information about the project, refer to the announcement posted on the city’s website or contact the Sejong Youth Hope Tomorrow Center for guidance.

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