Oh Sehoon: "Loan Regulations Increase Burden on Mirinae House Residents... Ministry Remains Unmoved"

"Reduced Policy Loan Limits
Only Increase the Burden on Newlywed Couples"

Seoul Mayor Oh Sehoon criticized the Ministry of Land, Infrastructure and Transport for its inaction, stating that the 6·27 loan regulations have reduced policy loan limits and increased the financial burden on newlywed couples moving into long-term jeonse apartments.

On September 18, through a Facebook post, Mayor Oh said, "Mirinae Jip is a long-term jeonse apartment that allows newlywed couples to live stably for 20 years with a deposit set at 80% or less of the market price, and it enjoys strong support, with the highest competition rate reaching 759.5 to 1." He pointed out, "The government's loan regulations undermine the very purpose of this system."

He added, "The policy loan known as 'Burtimok Loan' applies only to homes with a deposit of 400 million won or less, but in Seoul, only a quarter of the complexes meet this condition." He continued, "This issue arises because the same standards are applied to both Seoul and other regions, despite the differences in housing prices."

Due to the 6·27 loan regulations, the policy loan limits for jeonse loans such as the Burtimok Jeonse Loan have been lowered. As a result, if the rental deposit exceeds 400 million won, it is no longer possible to receive the low-interest Burtimok Jeonse Loan from the Housing and Urban Fund. After the loan regulations, the Burtimok Jeonse Loan limit for young people was reduced from 200 million won to 150 million won, and for newlywed couples in the Seoul metropolitan area, it was lowered from 300 million won to 250 million won.

Mayor Oh further stated, "To make matters worse, after the 6·27 regulations, the loan limit has been reduced from 300 million won to 250 million won." He continued, "For example, in the case of Mirinae Jip in Seongbuk-gu, it used to be possible to move in with 90 million won of one's own funds, but now 140 million won is required. By restricting even long-term jeonse, which is unrelated to curbing housing prices, the burden on newlywed couples has only increased."

Mayor Oh emphasized, "The Seoul Metropolitan Government has repeatedly requested improvements to the system, but the Ministry of Land, Infrastructure and Transport remains unmoved." He added, "'Housing stability,' which is unrelated to 'curbing housing prices,' should be actively encouraged. Regulations that crush the dreams of newlywed couples are like 'killing a cow to swat a fly.'".