Married Couples with Combined Income Over 100 Million KRW and Single Homeowners Also Eligible for Jeonse Loan Guarantee

From the 2nd of next month, homeowners with a combined annual income of over 100 million won or a house price exceeding 900 million won will also be able to use the jeonse loan guarantee.

[Image source=Yonhap News]

The Housing and Urban Guarantee Corporation (HUG) announced on the 28th that it has improved the guarantee system to expand the scope of jeonse loan guarantees. This was promoted as a follow-up measure to the '2023 Financial Services Commission Work Report' to expand jeonse loan guarantees for actual homeowners amid increased housing burdens due to interest rate hikes and falling house prices.

This regulatory relaxation will be implemented equally by the three guarantee institutions: HUG, Korea Housing Finance Corporation, and SGI Seoul Guarantee. Accordingly, from March 2nd, HUG will allow jeonse loan guarantees for homeowners with a combined spousal income exceeding 100 million won and homeowners with house prices exceeding 900 million won. Previously, only homeowners with a combined spousal income of 100 million won or less or house prices of 900 million won or less could use the jeonse loan guarantee.

Lee Byung-hoon, Acting President of HUG, said, "HUG will continue to strive to improve systems to reduce the housing burden on the public and will focus the corporation's capabilities on enhancing public housing welfare."

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