Daily Construction Workers Also Eligible for 'Jeonse Loan' at Banks... "Youth Aspirations Fulfilled"

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[Asia Economy Reporter Kim Bo-kyung] Daily construction workers will now be able to obtain jeonse deposit loans from banks at interest rates in the 2% range.

The Construction Workers Mutual Aid Association announced on the 12th that it will support daily construction workers in accessing bank jeonse deposit loans through collaboration with Hana Bank.

Until now, daily construction workers faced restrictions in using bank loans when needing a large sum of money because they do not have a fixed employer and it is difficult to submit income and employment verification documents.

In response, the Mutual Aid Association, in cooperation with Hana Bank, revised Hana Bank's existing 'Prime Housing Jeonse Loan' product to recognize the 'Retirement Mutual Aid Contribution Statement' issued by the Association as valid income verification. As a result, construction workers can now use jeonse deposit loans at interest rates in the 2% range.

The introduction of the jeonse deposit loan product through cooperation with financial institutions was also influenced by requests from young construction workers. In August last year, during a meeting with the Construction Workers Union Youth Bus at the Association, they requested alternatives, stating, "Young construction workers preparing for marriage cannot obtain jeonse deposit loans from banks, which accelerates the shortage of young workers at construction sites."

The jeonse deposit loan product can be applied for at loan counters of Hana Bank branches nationwide. The loan limit is set based on the number of days the daily construction worker has contributed to the retirement mutual aid fund over the past 12 months as an income criterion.

For more details, refer to the notices on the Association's website or contact Hana Bank Customer Service Center at 1588-1111.

Song In-hoe, Chairman of the Mutual Aid Association, stated, "We have been able to fulfill the wishes of young construction workers in just one year," and added, "We hope that not only young workers but also construction workers facing economic difficulties due to the novel coronavirus disease (COVID-19) will experience reduced housing cost burdens."