Newborn Special Loan with Eased 'Marriage Penalty'... Income Criteria Raised

Support Fund Jeonse Loan Income Criteria for Newlyweds 100 Million KRW
Special Loan for Newborns Combined Spousal Income Criteria 200 Million KRW

[Image source=Yonhap News]

The Ministry of Land, Infrastructure and Transport has decided to ease the conditions for dual-income newlywed couples to qualify for the special newborn loan and the Betimok Jeonse deposit loan. The Ministry announced this on the 4th at the 'Follow-up Measures Review Meeting on the Livelihood Discussion' held at the Yongsan Presidential Office.

First, the combined income limit for couples eligible for the special newborn loan for households with newborns will be raised from the current 130 million KRW to 200 million KRW. The income criteria for newlywed couples to qualify for the Betimok Jeonse deposit loan will also be increased from 75 million KRW to 100 million KRW.

A Ministry of Land, Infrastructure and Transport official explained, "This measure is to address concerns that the income criteria for government-supported loans act as a marriage penalty for newlyweds, causing delays in marriage registration. By raising the combined spousal income criteria for loans, we aim to convert this into a 'marriage advantage.'"

He continued, "Starting this year, the special newborn loan, which applies to households that have given birth within two years from the loan application date (applicable from 2023 births), was previously only available to households with an annual income of 130 million KRW or less, but the support target will be expanded to households with an annual income of up to 200 million KRW."

Additionally, "Although the income requirement for the newlywed Betimok Jeonse deposit loan was raised once in October last year, there were still criticisms that it remained stricter compared to the annual income requirement of 50 million KRW or less for single-person youth households, considering dual-income households. Therefore, the income criteria will be raised from an annual income of 75 million KRW or less to 100 million KRW or less," he stated.

This system improvement will be implemented as soon as specific loan conditions, such as loan interest rates by income bracket, are established.

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