Busan City Launches Support for Jeonse Deposit Return Guarantee Fees!

Easing the Burden for Youths Joining Jeonse Deposit Return Guarantee

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Busan City will continue the ‘Youth Safe Jeonse Deposit Return Guarantee Fee Support Project’ in 2023 to reduce the risk of losing jeonse deposits due to fraud such as the recent ‘Villa King’ case and to ease the burden on 2030 youth in subscribing to the jeonse deposit return guarantee.

Youth Safety Jeonse Deposit Return Guarantee Fee Support Project.

The ‘Youth Safe Jeonse Deposit Return Guarantee Fee Support Project’ is a system designed to alleviate the psychological and economic burden of legal procedures and loss risks for youth who must take recovery actions when landlords cannot return the jeonse deposit after the lease contract ends. In 2022, 585 people received support.

The support conditions are ▲ youth aged 19 to 34 residing in Busan as of the application date ▲ annual income of 50 million KRW or less (80 million KRW including spouse’s income) ▲ residential housing with a jeonse deposit of 300 million KRW or less. If all conditions are met, the full guarantee fee is supported.

However, if the house is registered as a rental housing under the ‘Special Act on Private Rental Housing,’ the landlord is required to subscribe to the ‘Rental Housing Lease Deposit Guarantee,’ so such cases are excluded from support.

The application period starts from January 16, after subscribing to the guarantee with Housing and Urban Guarantee Corporation (HUG), SGI Seoul Guarantee, or Korea Housing Finance Corporation, and applications for guarantee fee support can be made on the Busan City Youth Platform.

From March, the procedure will be simplified so that guarantee subscription and guarantee fee support application can be done simultaneously at HUG.

Mayor Park Hyung-jun stated, “We will continue to implement various housing policies, including providing a legal protection network that can serve as a practical safety device for youth to ensure housing stability and protect property rights.”

For more details, refer to the Busan City Youth Platform or contact the Youth Hope Policy Division, Youth Life Team, or Housing and Urban Guarantee Corporation.

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