Busan City Implements Housing Loan and Interest Support Program for Newlywed Couples in Q1

Up to 200 Million KRW Jeonse Loan for Newlyweds, 2% Interest Support

Application via Busan Bank Mobile Banking App on January 16-17

Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] The ‘Newlywed Housing Loan and Interest Support Project,’ which concluded successfully last year, will continue in 2023 considering the continuous rise in market interest rates and difficult economic conditions.

Busan City will implement the ‘2023 1st Quarter Newlywed Housing Loan and Interest Support Project’ targeting 300 newlywed households to create a marriage and childbirth-friendly environment by alleviating the housing cost burden for newlyweds.

The Newlywed Housing Loan and Interest Support Project provides loans of up to 200 million KRW for rental deposits to newlyweds and supports loan interest for two years. It was first launched in May 2020.

The city expedited consultations with financial institutions regarding the 2023 support project to stabilize the program and meet the expected demand from newlyweds. However, due to the recent sharp rise in the base interest rate, Busan Bank, which handles the loans, raised its loan interest rate from 2.0% to 4.0%, a 2.0% increase. Consequently, the city agreed to maintain the support interest rate at 2% as in 2022, resulting in a 2% interest burden borne by the applicants, unlike last year.

The 1st quarter support project applications can be submitted via the Busan Bank mobile banking app from 9 a.m. on January 16 to 4 p.m. on January 17.

Application Submission and Selection Method Guide.

A total of 300 households will be selected by random draw from the applicants. Eligible applicants are newlywed couples residing in Busan City as of the application date (within 7 years of marriage registration) or prospective newlyweds (within 3 months before marriage), with a combined household income of 80 million KRW or less and no home ownership.

However, basic livelihood security recipients, those who have signed lease contracts with their parents, residents of public rental housing, previous beneficiaries (participation limited to once in a lifetime), and recipients of similar support programs are excluded.

The results of the beneficiary selection by lottery will be announced on January 26, after the Lunar New Year holiday. Loan execution for successful applicants will take place from February 9 to March 31. Detailed information can be found on the Busan City website under the Notices/Announcements section.

Park Hyung-jun, Mayor of Busan, stated, “The high housing cost burden on newlyweds not only lowers quality of life but also leads to postponing marriage and giving up childbirth. We hope this support project will ease the housing cost burden for newlyweds and create an environment conducive to having and raising children. We will continue to promote support policies that newlyweds need.”

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