LH Provides 200 Million KRW and 1.3% Annual Interest Jeonse Loans for Residents of Aged and Poor Housing

Korea Land and Housing Corporation (LH) announced on the 30th that it will provide jeonse loan support at an annual interest rate of 1.3% to residents of old and deteriorated houses classified as dangerous buildings within residential environment improvement project zones and redevelopment project zones.

Eligible applicants are those who have lived for more than one year in old and deteriorated houses within areas designated and announced under the Urban Renewal Act as residential environment improvement or redevelopment project zones, and whose combined annual income with their spouse is 60 million KRW or less.

Additionally, this support is limited to heads of households without home ownership who have paid at least 5% of the deposit after signing the lease contract, and all household members must be without home ownership.

Eligible housing must have a leased exclusive area of 85㎡ or less (100㎡ in eup or myeon areas outside metropolitan urban areas), and the lease deposit must be 300 million KRW or less (200 million KRW for local areas).

The support amount is up to 80% of the lease deposit, with a maximum of 200 million KRW in the metropolitan area and 150 million KRW in other regions.

The loan period is 2 years, and if the borrower continues to reside in the eligible housing, the loan can be extended twice in 2-year increments, allowing a maximum loan period of 6 years.

LH plans to first implement the relocation fund support system for residents living in the Daejeon Daedong2 residential environment improvement project and the Yeongdeungpo Yeongjin Market redevelopment project zones in Seoul, after screening eligibility criteria such as residence period and income.

In the future, residents of other residential environment improvement and redevelopment projects implemented by LH who meet the eligibility criteria can apply for loans at the time of relocation through the LH regional headquarters and compensation departments in charge.

This project has been carried out since 2018 to swiftly renovate old buildings in urban areas and protect residents from old and dangerous buildings. Since its implementation, LH has supported jeonse loans to residents in residential environment improvement project zones densely populated with old buildings such as Busan Munhyeon2 and Incheon Songnim4, helping to stabilize residents' housing situations.

Park Dong-seon, head of LH’s Regional Balanced Development Headquarters, said, "In a situation where interest rates are continuously rising, providing relocation funds at a low interest rate of 1.3% is expected to protect citizens from dangerous buildings and contribute to alleviating housing instability for residents in redevelopment zones."

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