Gyeonggi-do Supports Housing and Rent for Youth Preparing for Independence

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will support housing stability for young adults aged 18 and over who are preparing for independence after leaving child welfare facilities or completing family foster care (youth aging out of care) by prioritizing move-in to 166 public rental housing units provided by Gyeonggi Housing and Urban Corporation (GH) this year, along with support for rental deposits and other housing costs.

The province will first supply a total of 166 units to youth preparing for independence this year, including 63 jeonse rental units, 66 youth purchase rental units, and 37 Happy Housing units from GH. This is an increase of 63 units compared to last year (103 units).

The province plans to flexibly expand the supply volume considering the application demand from youth preparing for independence. For detailed inquiries regarding application methods and eligibility for public rental housing, contact GH.

The province also supports housing costs according to housing types. For jeonse rental housing, 100% of the rental deposit (up to 120 million KRW) is supported, allowing free move-in. This reflects a policy improvement proposed by the province in June-July 2021, which the government incorporated through guideline revisions in October of the same year.

Until now, GH supported only 95% of the rental deposit under the 'Existing Housing Jeonse Rental Business Processing Guidelines.' As a result, tenants had to bear 5% of the deposit themselves; for example, if the rental deposit was 100 million KRW, the tenant’s share was 5 million KRW, causing most youth preparing for independence to avoid moving in. From this year, the province will provide jeonse rental housing free of charge to youth aged 20 and under preparing for independence, and for those aged 21 and over, the rental deposit loan interest rate will be reduced by 50%.

In addition, the province plans to provide tailored support through existing housing cost support policies such as ▲purchase rental deposit support (interest-free loan of 50% of the rental deposit, up to 2.5 million KRW) and jeonse loan guarantee and interest support (up to 45 million KRW, 2% interest support) ▲Happy Housing rental deposit interest support (40% interest support on the standard rental deposit loan amount) ▲government-supported housing benefits (actual rent paid up to the standard rent limit for those with median income at or below 46%) ▲youth monthly rent support (up to 200,000 KRW monthly rent support for those with median income at or below 60%).

Starting this year, the province will also recruit and assign independence support specialists for youth preparing for independence to provide personalized counseling on rental housing, housing costs, and move-in. Additionally, support will be provided for essential items such as wallpaper, flooring, bedding, dishes, as well as furniture and home appliances like desks and beds upon move-in.

Hong Ji-seon, Director of the Urban Housing Office of the province, emphasized, "We will continuously develop policies for housing-vulnerable groups such as youth preparing for independence who are experiencing housing insecurity in the province to help ensure housing stability."

Meanwhile, according to the province, about 400 youth preparing for independence leave care each year at an early age, and only about half of them receive government housing support (such as Korea Land and Housing Corporation jeonse rental housing). The rest rely on foster families or monthly/jeonse rental forms, facing difficulties in social adaptation and independence.