LH to Supply 3,000 Jeonse Rentals to Multi-Child Households Without Homes

Recruitment of Tenants for Low-Income Homeless Applicants

[Asia Economy Reporter Hwang Seoyul] Korea Land and Housing Corporation (LH) announced on the 2nd that it will recruit tenants for a total of 3,000 units of ‘Jeonse Rental Housing’ to stabilize housing for low-income multi-child households.

‘Jeonse Rental Housing’ is a system where selected tenants find a house they wish to live in, then LH signs a Jeonse lease contract with the homeowner and subleases it to the tenant at an affordable price.

The recruitment target is households without a home raising two or more minors as of today, and those who meet one of the first-priority eligibility criteria such as recipients of basic livelihood security, near-poverty class, or single-parent families can apply. Notably, from this tenant recruitment announcement, applicants can freely choose their desired area within the nationwide project areas regardless of their current residence.

The Jeonse deposit support amount for households with two children is up to △13.5 million KRW in the metropolitan area △10 million KRW in metropolitan cities △8.5 million KRW in other regions. For households with more than two children, an additional 2 million KRW per extra child is provided. Tenants pay about 2% of the Jeonse support amount as a rental deposit, and monthly rent is charged on the remaining amount with an annual interest rate of 1-2%. The interest rate is reduced by up to 0.5 percentage points depending on the number of minor children, and an additional preferential interest rate of 0.2 percentage points is applied to recipients of livelihood and medical benefits. The lease period is basically two years, renewable up to nine times, allowing a maximum stay of 20 years. However, eligibility requirements must be met upon renewal.

The application period is from the 9th to the 20th of this month, and applications can only be submitted online through the LH subscription center. The selection results of tenants will be announced by regional headquarters at the end of June.