#. Mr. Jeong, a young worker with an annual income of 40 million KRW, had a tight budget after paying deposit loan interest and monthly rent. However, since 2022, the eligibility for the youth-exclusive deposit-guaranteed monthly rent loan has been relaxed to an annual income of up to 50 million KRW, allowing him to apply for the loan product. Additionally, benefits have been expanded, such as interest-free support for monthly rent up to 200,000 KRW. Mr. Jeong plans to invest in self-development as his housing costs have become lighter.
From next year, the eligibility for the youth-exclusive deposit-guaranteed monthly rent loan will be relaxed to an annual income of up to 50 million KRW. Also, monthly rent up to 200,000 KRW will be supported interest-free.
On the 27th, the Ministry of Land, Infrastructure and Transport announced next year’s business plan including these details.
The Ministry plans to newly implement a monthly rent support project in the first half of next year to reduce youth housing costs. Accordingly, about 152,000 low-income youths excluded from housing benefits will receive up to 200,000 KRW per month for one year. Eligible youths are those aged 19 to 34 with personal income below 60% of the median income and household income below 100% of the median income. If youths still have monthly rent to pay after receiving rent support, they will be additionally supported with interest-free loans up to 200,000 KRW.
The requirements for monthly rent loans will also be relaxed. The income criterion will be eased from the previous 20 million KRW per year to 50 million KRW per year, and the eligible housing will be expanded from monthly rent of 600,000 KRW to 700,000 KRW.
Additionally, 54,000 youth rental housing units will be supplied, including 15,000 Happy Houses, 14,500 purchased rental units, 9,500 jeonse rental units, and 15,000 public-supported private rental units. It is estimated that the total youth rental housing supplied from this year through 2025 will reach 243,000 units. Plans also include providing customized services such as specialized designs and piloting shared housing projects for single-person households.
In cooperation with the Ministry of Education, tailored housing information for youths securing their first housing space, prevention of jeonse fraud, and practical housing education such as lease contract knowledge will also be provided.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
