Interest Support Up to 15 Million Won, Relaxed Eligibility Requirements, and Significant Expansion of Beneficiaries
[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Gwangyang City is implementing bold housing stability policies, including providing up to 15 million KRW in loan interest support for young adults, newlywed couples, and families with multiple children, as well as constructing youth happiness housing.
As a result of last year's housing support policies, a total of 781 beneficiaries received assistance and settled in the area, and this year the city plans to expand these policies to help beneficiaries settle stably in the region.
The sector-specific projects include ▲ Youth Housing Loan Interest Support Project ▲ Newlywed Couples and Multi-Child Families Housing Support Project ▲ Youth Employment Housing Cost Support Project ▲ Youth Happiness Housing Construction.
◇ Youth Housing Loan Interest Support Project
The 'Youth Housing Loan Interest Support Project,' a representative housing welfare policy of Gwangyang City, targets young adults aged 19 to 39, including job seekers, early-career workers, single workers, and newlywed couples, aiming to stabilize their housing life. It was first implemented among basic local governments in 2018 to support young people's social adaptation and settlement.
If finally selected as a beneficiary, individuals can receive up to 15 million KRW for purchase funds for a maximum of 5 years, and up to 8 million KRW for jeonse (key money deposit) loan interest support for up to 4 years.
So far, a total of 619 young people have benefited from the interest support, including 106 households (166 people) who moved from outside the area, demonstrating effectiveness not only in encouraging long-term settlement of young populations but also in attracting new residents.
Additionally, in a satisfaction survey conducted last month among loan interest support beneficiaries, 98.4% responded that they were satisfied with the project, receiving positive evaluations for reducing young people's housing burdens.
Starting this year, the city has decided to relax the eligibility requirements and expand the target group for the Youth Housing Loan Interest Support Project to attract more young residents and provide more generous benefits.
The existing criteria for newlywed couples will be extended from within 5 years of marriage registration to within 7 years, and families with two or more children will be additionally supported.
Furthermore, to proactively respond to rising housing prices, the price limits for eligible homes will be relaxed: for purchases, from up to 300 million KRW to up to 600 million KRW, and for jeonse, from up to 200 million KRW to up to 300 million KRW.
◇ Newlywed Couples and Multi-Child Families Housing Support Project
The Newlywed Couples and Multi-Child Families Housing Support Project promoted by the city is gaining popularity.
This support project provides partial loan interest support for home purchases to newlywed couples and multi-child families residing in Gwangyang City, offering annual interest support ranging from 600,000 KRW to 1.8 million KRW for up to 3 years depending on the loan amount.
So far, approximately 170 million KRW has been provided to 116 households, fostering a childbirth- and child-rearing-friendly environment.
◇ Youth Employment Housing Cost Support Project
To help young people establish economic independence and settle stably, the Youth Employment Housing Cost Support Project is also underway.
This project provides monthly housing cost support of 100,000 KRW for up to 12 months to young workers or business owners aged 19 to 39 residing in Gwangyang City with income below a certain threshold, living in rental or monthly lease housing.
Last year, 58 beneficiaries received a total of 54 million KRW in housing cost support, and this year the city plans to recruit 50 beneficiaries to ease young people's housing cost burdens.
◇ Youth Happiness Housing Construction including Startup Support
To encourage population inflow and respond to diverse housing demands, the city plans to develop youth happiness housing with 150 units in the Chilseong-ri area of Gwangyang-eup by 2023.
Additionally, 130 startup support housing units for young entrepreneurs will be constructed in the Seonghwang Do-i district.
The startup housing is scheduled for completion by the end of June 2024.
Jung Hyun-bok, Mayor of Gwangyang City, stated, “We will continue to promote customized housing policy projects that leverage Gwangyang City's strengths in stabilizing young people's lives to encourage successful regional settlement and create a vibrant city.”
For inquiries related to housing stability support, please contact the Population Policy Team at the Strategic Policy Office of Gwangyang City.
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