[Asia Economy Reporter Yoo In-ho] Korea Land and Housing Corporation (LH) announced on the 12th that it is recruiting tenants for the ‘Youth Jeonse Lease’ to support youth housing stability.
Youth Jeonse Lease housing is a type of housing where selected youth tenants find a desired residence, and LH signs a Jeonse (key money deposit) contract with the property owner and then subleases it at a reduced rate. This recruitment targets 8 regions including southern Gyeonggi Province. There are 670 units in southern Gyeonggi areas such as Gwacheon and Gwangju, 254 units in Busan and Ulsan, 68 units in Gangwon, 37 units in Chungbuk, 238 units in Gwangju and Jeonnam, 131 units in Daegu and Gyeongbuk, and 34 units in Gyeongnam, totaling 1,490 units.
The eligibility is for non-homeowners aged 19 to 39 who are not married. Among them, the first priority group includes youth from households receiving livelihood, medical, or housing benefits, single-parent families, low-income households, or youth who are protection-terminated children. The second priority group includes youth whose monthly average income of themselves and their parents is 100% or less of the previous year’s average monthly income per household member of urban workers, and who meet asset criteria.
The rental deposit is 1 million KRW for the first priority group and 2 million KRW for the second priority group. The rent is calculated by applying an interest rate of 1-2% to the amount remaining after subtracting the rental deposit from the support limit amount of the Jeonse deposit. The support limit amounts are 120 million KRW for the metropolitan area, 95 million KRW for metropolitan cities, and 85 million KRW for other regions.
For housing exceeding the support limit amount, the excess portion can be borne by the tenant within 150% of the limit amount, and the lease rights must be attributed to LH for support eligibility.
The lease period is basically 2 years, with up to 2 renewals possible. If the tenant marries or is a protection-terminated child after moving in and meets separate income and asset criteria, up to 7 renewals are possible, allowing stable residence for up to 20 years.
Applications can be submitted online through the LH Application Center from the 13th until September 14th.
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