LH to Supply 4,500 Jeonse Rental Houses for Elderly and Multi-Child Families

Korea Land and Housing Corporation (LH) will supply 4,500 jeonse rental housing units for the elderly and multi-child families.

LH announced on the 22nd that applications for 2,500 jeonse rental units for the elderly will be accepted from the 29th of this month until the 8th of next month.

Jeonse rental housing refers to housing where the selected tenant finds a residence, LH signs a jeonse contract with the property owner, and then subleases it to the tenant.

Applicants for elderly jeonse rental housing must be recipients or low-income households aged 65 or older residing in the project target cities, counties, or districts as of the recruitment announcement date (June 14), and must be members of a household without a home.

The project areas include the entire metropolitan area (Seoul, Incheon, Gyeonggi), metropolitan cities, and cities nationwide with populations over 80,000. The support limits are 120 million KRW in the metropolitan area, 80 million KRW in metropolitan cities, and 60 million KRW in other regions.

Tenants pay 2% or 5% of the jeonse deposit within the support limit as a rental deposit, and the monthly rent is calculated by applying an annual interest rate of 1-2% to the amount of the jeonse deposit excluding the rental deposit.

The initial lease period is two years, and it can be renewed every two years after the lease period expires.

Applications are also accepted for 2,000 jeonse rental units for multi-child families.

Applicants must be households without a home raising two or more minors as of the announcement date (June 13), with a monthly average income of 70% or less of the urban worker household income by household size from the previous year, regardless of their current residence.

The jeonse deposit support amount for two-child families is up to 135 million KRW in the metropolitan area, 100 million KRW in metropolitan cities, and 85 million KRW in other regions. For families with more than two children, an additional 20 million KRW is provided per additional child.

Tenants pay about 2% of the jeonse support fund as a rental deposit and bear the monthly rent calculated by applying an annual interest rate of 1-2% to the remaining amount.

The lease period is basically two years, and it can be renewed up to nine times, allowing a maximum residence period of 20 years.

Applications for housing can only be made through the LH subscription center website until July 1, and the selection results for tenants will be announced in September.

For more details, refer to the announcement posted on the LH subscription center or contact the LH Jeonse Rental Integrated Call Center.

No Young-bong, head of the LH Purchase Jeonse Rental Business Department, said, "Jeonse rental housing has the advantage that tenants can live in their desired area at a price lower than the market rate," adding, "We hope this housing supply will help realize housing stability for the elderly and multi-child families."