Seoul City to Recruit 2,800 Units of 'Jeonse Deposit Support Public Housing' for Low-Income and Newlywed Couples

Recruitment of 2,500 Low-Income Basic Livelihood Recipients and 300 Newlywed Couples for Housing
Low-Income Support of up to 90 Million KRW and Newlywed Couples up to 240 Million KRW for Low-Interest Jeonse Deposit Loans

[Asia Economy Reporter Yuri Kim] The Seoul Metropolitan Government is recruiting 2,800 tenants for the 'Jeonse Deposit Support Public Housing' to stabilize housing for low-income groups and newlywed couples. Among them, 2,500 will be selected from low-income groups, and 300 from newlywed couples.

Jeonse Deposit Support Public Housing is a type of public rental housing where applicants directly find a house they wish to live in and apply to the Seoul Housing & Communities Corporation (SH Corporation). The SH Corporation reviews the possibility of a Jeonse contract, becomes the contracting party, signs a Jeonse contract with the homeowner, and then subleases the house to the applicant at a reduced rent.

At the time of contract, for low-income groups, the SH Corporation supports 95% of the Jeonse or monthly rent deposit up to 90 million KRW per household at a low interest rate, and the remaining 5% is paid by the tenant as a contract deposit. If the Jeonse or monthly rent deposit exceeds 90 million KRW, the tenant must cover the excess deposit.

Applicants must be non-homeowners registered as household members residing in Seoul as of the tenant recruitment announcement date (June 1, 2020) and have their resident registration in the project area (each autonomous district). For low-income groups, the first priority includes livelihood and medical benefit recipients, single-parent families, households urgently needing housing support, and disabled or elderly persons with a monthly average income below 70% of the previous year's urban worker household income. For newlywed couples, the criteria for first, second, and third priorities differ by category.

Seoul will supply 2,500 households to basic livelihood recipients, single-parent families, and others, and 300 households to newlywed couples out of the total 2,800 households. To ensure balanced distribution by region, allocation will be proportionally distributed by autonomous district based on the previous year's application status.

The eligible housing includes pure Jeonse houses with exclusive areas of 85㎡ or less (60㎡ or less for single-person households) and deposit-based monthly rent houses (ban-jeonse). The deposit limit for low-income groups is up to 225 million KRW, which is the sum of the Jeonse deposit for pure Jeonse or the basic deposit and Jeonse conversion deposit for deposit-based monthly rent. For Newlywed Couple I, the limit is 300 million KRW, and for Newlywed Couple II, it is 600 million KRW. Officetels must have floor heating, cooking facilities, and a bathroom to be suitable for residential living, and applicants currently residing in a house that meets the requirements can also apply.

The lease period is two years, and as long as eligibility is maintained, renewal is possible up to nine times in two-year increments. Support can be received for up to 20 years (for Newlywed Couple Jeonse Lease II, two renewals are possible, with an additional two renewals if the tenant has children, for a maximum of 10 years). However, eligibility conditions at the time of renewal must be met.

Applications can be submitted from the 10th to the 19th at the resident center (dong office) where the applicant is registered. The selected tenants will be announced on the SH Corporation website about three months after the application deadline, and individual notifications will be sent to the selected applicants.

Ryu Hoon, Head of the Housing and Architecture Headquarters of Seoul City, said, "As the rise in Jeonse and monthly rent prices in Seoul's housing rental market increases the housing cost burden on ordinary citizens, the role of Jeonse Deposit Support Public Housing, which has been promoted since 2008, is significant," adding, "We hope that the 2,800 households supplied this year will also help stabilize housing for low-income citizens and newlywed couples."