Daejeon City, Youth Housing Lease Deposit Interest Support 'Applications Close This Month'

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The application for interest support on housing lease deposit for Daejeon youth will close this month.

On the 23rd, Daejeon City announced that due to a significant increase in applicants, the application for interest support on housing lease deposits will close at the end of this month.

The city started the program on April 1 and has received applications from 630 people as of today. This number is close to the 644 applicants from the entire last year, and this year’s budget is expected to be exhausted soon.

Therefore, the city plans to accept applications until the 31st of this month and then close the reception. Due to the early closure of applications, applicants must execute the loan by early September, within 90 days.

The program is implemented to reduce the housing cost burden for young adults and those starting their careers. Support is available for young couples only if both the applicant and spouse are non-homeowners, and contracts must be made after the announcement date (March 25). Recipients of housing benefits and previous beneficiaries of this program are not eligible to apply.

The eligible housing includes jeonse (long-term lease) or monthly rent housing with a lease deposit of 150 million KRW or less within Daejeon, with a conversion rate to monthly rent of 7.3% or less, as well as residential officetels.

The loan is a lump-sum repayment with a 2-year maturity, with an interest rate of 3.0%, of which the city supports 2.3%, so the actual interest rate borne by the borrower is 0.7%. The loan can be extended twice every 2 years.

Earlier, the city increased the loan limit from 50 million KRW to 70 million KRW based on youth feedback and changed the application period from the 1st to the 10th of each month to continuous acceptance.

Applications can be made through the Youth Housing Lease Deposit Interest Support Program website. After qualification screening, selected final beneficiaries can receive loans at six Hana Bank branches.

For more details, refer to the announcement posted on the Youth Housing Lease Deposit Interest Support Program website or the Daejeon City Hall website, or contact the Youth Policy Division at City Hall.

Park Moon-yong, Director of the Youth and Family Bureau of the city, said, "We will seek additional housing stability measures, such as securing supplementary budgets after the program closes, to ensure practical benefits reach local youth suffering from rising housing costs."