Comparison Table of General Jeonse and Iksan City Youth Agreement Jeonse Benefits [Photo by Korea Housing Finance Corporation]
[Asia Economy Reporter Song Seung-seop] Korea Housing Finance Corporation will implement a housing welfare project starting from the 13th for non-homeowning youth aged 19 to 39 residing in Iksan, Jeonbuk.
On the same day, Housing Finance Corporation announced that it signed a 'Jeollabuk-do Iksan City Youth Housing Support Project Business Agreement' in partnership with Iksan City, Jeonbuk Bank, and NH Nonghyup Bank. Through this agreement, the corporation has established contracts related to jeonse and monthly rent loan guarantees with 10 metropolitan local governments and 5 basic local governments, supplying products accordingly.
The corporation will fully guarantee up to 90% of the lease deposit, up to a maximum of 100 million KRW, exclusively for the ‘Iksan City Youth Agreement Jeonse Guarantee’ product. The guarantee fee rate will also be applied at the lowest rate (annual 0.05%).
Iksan City will support loan interest up to 3 percentage points annually for selected non-homeowning youth. Considering that the market jeonse loan interest rate is around 2% annually, this effectively allows the use of jeonse loans with no interest.
A representative of the Housing Finance Corporation stated, “We operate jeonse and monthly rent guarantee products to reduce housing finance costs for non-homeowning youth and newlyweds, and supplied about 3.7 trillion KRW in guarantees last year,” adding, “We plan to steadily expand agreement products that allow local governments to support interest subsidies to promote housing welfare.”
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