Young City Gwangyang, Bold Support for Housing Stability

Up to 15 Million KRW Support Including Youth Housing Loan Interest Assistance
Implementing Population Policies Responsible for Housing Welfare Too

[Gwangyang=Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik] Gwangyang City in Jeollanam-do is promoting a groundbreaking Gwangyang-style housing stability population policy, providing up to 15 million KRW in loan interest support for young people, newlyweds, and multi-child families.

Gwangyang City is currently facilitating the move-in of 4,334 apartment units in seven urban development project complexes, including Gwangyeong and Uiam districts, and Wau district, by the end of this year.

Starting in March with 924 new units in Gwangyeong and Uiam districts, followed by 339 units in Madong district, and in the second half of the year, 831 units in Wau district, 496 units in Deokrye area of Gwangyang-eup, 1,140 units in Seonghwang and Doi districts, and 605 units in Jungma and Geumho areas are scheduled for move-in.

In particular, some apartment complexes will offer consumer-centered choices with branded apartments and various unit sizes, attracting many young worker families employed in the Gwangyang industrial complex who consider work-life balance and childcare environments.

The city plans to further strengthen support to alleviate housing cost burdens for local youth amid the prolonged COVID-19 crisis, which has worsened housing difficulties for young people.

The sector-specific projects include the Youth Housing Loan Interest Support Project, Newlywed and Multi-child Family Housing Support Project, and Youth Employment Housing Cost Support Project.

The Youth Housing Loan Interest Support Project, a flagship housing welfare policy of Gwangyang City, was first implemented by the local government in 2018 to stabilize housing life and support social adaptation for youth aged 19 to 39, including job seekers, early-career workers, single workers, and newlyweds.

If finally selected as an interest support recipient, individuals can receive up to 15 million KRW for purchase loan interest support for up to five years, and up to 8 million KRW for jeonse (long-term deposit lease) loan interest support for up to four years.

Until 2020, a total of 621 young people benefited from the interest support, including 106 households (166 individuals) who moved in from outside the region, demonstrating effectiveness not only in encouraging long-term settlement of youth population but also in attracting population inflow.

The city plans to relax eligibility criteria such as newlywed status and target housing prices and expand support to multi-child families to attract more young residents and provide greater benefits.

The Newlywed and Multi-child Family Housing Support Project provides partial loan interest support for housing purchases to newlywed couples and multi-child families residing in Gwangyang City, offering up to 1.8 million KRW annually for a maximum of three years.

Until last year, the city supported approximately 116 households with about 170 million KRW, fostering a childbirth- and child-rearing-friendly environment.

Previously, only loan products supported by the Korea Housing Finance Corporation were eligible, but from this year, general financial institutions’ t-Bogeumjari Loan and Didimdol Loan are also recognized.

Additionally, the multi-child family criteria have been relaxed from three or more minor children to two or more children, and recruitment for new applicants for the Newlywed and Multi-child Family Housing Support Project is expected to be conducted around September.

The city is also promoting the Youth Employment Housing Cost Support Project to help young people build economic independence and settle stably.

This housing cost support project provides up to 1.2 million KRW annually for a maximum of 12 months to young workers or business owners aged 18 to 39 residing in Gwangyang City with certain income limits, who live in rental or monthly lease housing.

Last year, a total of 54 million KRW was provided to 58 recipients, and this year, 45 new recipients have been selected.

Cho Sunmi, Director of Strategic Policy, said, “We are preparing and implementing various population and youth policies to improve the quality of life for young people living in Gwangyang,” adding, “The city will do its best to support tangible welfare policies that allow youth to benefit in line with the construction of new apartment complexes.”

Gwangyang=Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik hss79@asiae.co.kr