[Asia Economy Reporter Kim Hyo-jin] The supply scale of youth-tailored jeonse and monthly rent loans will increase from 1.1 trillion won to 4.1 trillion won.
The Financial Services Commission announced on the 26th that this was included in the 'Youth Life Improvement Plan' confirmed and announced at the current issue coordination meeting chaired by the Prime Minister.
The youth-tailored jeonse and monthly rent loan is a product that supports deposits (up to 70 million won) and monthly rent (up to 500,000 won per month) at an interest rate in the 2% range for youth aged 34 or younger.
The Financial Services Commission, Korea Housing Finance Corporation, and banking sector started the youth-tailored loan project last May with a supply target of 1.1 trillion won through an agreement. As of the 20th, 25,000 people have been supported with 1.2 trillion won.
The average loan amount per user was 50.09 million won for jeonse loans and 5.91 million won for monthly rent loans (246,000 won per month), and the interest rate was an average of 2.57%, which is 0.33 percentage points lower than the average market jeonse loan interest rate (2.90%, guaranteed by Korea Housing Finance Corporation).
On average, it was explained that the housing cost reduction effect was significant, with about 100,000 won per month for jeonse and about 10,000 won per month for monthly rent paid as interest.
Among the users, 28.5% were students and job seekers without income. A Financial Services Commission official said, "Considering that it is difficult for these people to get loans through the financial sector, the actual effect on solving youth housing problems is greater."
As the loan scale expands, the Financial Services Commission expects that about 60,000 additional youths will benefit. The Financial Services Commission plans to expand online (non-face-to-face) applications currently available at KakaoBank to other banks.
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