Daejeon City Resumes Youth Housing Lease Deposit Support Reflecting 'Interest Rate Hike'

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Daejeon city government recently resumed the interest support program for youth housing lease deposits, reflecting the recent interest rate hikes.

The city announced on the 4th that applications for the youth housing lease deposit interest support program will be accepted from the 4th until December 15th.

The interest support program was originally closed in May due to the depletion of the secured budget caused by an increase in applicants. However, the city explained that the program will resume as an additional budget of 50 million KRW has been secured.

The interest support rate will also be increased. Reflecting the recent rise in loan interest rates from the previous 3% to the 5% range, the city plans to raise the interest support rate from 2.3% to 4%. Through this, the city expects that the youth’s burden will only increase from the previous 0.7% to 1%.

The eligibility for the interest support program includes youth or young couples aged 19 to 39 who currently have a residence in Daejeon or are enrolled (including leave of absence) or employed at a university (graduate school) or workplace located in Daejeon, and who do not own a home. It applies when renting a jeonse (lump-sum deposit lease), banjeon (semi-jeonse), or monthly rent housing, as well as residential officetels, with a lease deposit of 150 million KRW or less.

The maximum loan amount eligible for interest support is 70 million KRW.

To prevent an early closure of the program due to a sudden surge in applicants after the announcement, the city will limit the number of daily applicants to around 10.

The applicant limit also aims to distribute applications so that youth who need loans due to insufficient housing lease deposits can apply in accordance with their contract timing without any policy gaps.

Applications can be submitted online through the Daejeon Youth Portal or the Youth Housing Lease Deposit Interest Support Program website.

For more detailed information, please refer to the announcement posted on the Daejeon Youth Portal or the Youth Housing Lease Deposit Interest Support Program website.

Ji Yong-hwan, Director of the Welfare Bureau of the city, said, “We hope that the interest support program will serve as a catalyst to help local youth become independent,” and added, “The city will continue to gather opinions on what youth need and continuously develop and implement Daejeon-style youth policies.”