Applications Open to All Non-Homeowners from the 16th
Deposit Conversion Range Increased to 80% to Reduce Monthly Rent Burden
[Asia Economy Reporter Cha Wanyong] Korea Land and Housing Corporation (LH) announced that it will begin accepting applications on the 16th for 3,213 jeonse-type housing units (apartments) available to any member of a household without a home, regardless of income or assets.
The supply targets include 2,611 units of construction rental housing (permanent, national, and happy housing) and 602 units of purchased rental housing. There are 1,710 units in the metropolitan area, 315 units in metropolitan cities, and 1,188 units in Gyeongnam and provincial areas, with applicants being recruited by supply region.
Jeonse-type housing is supplied with a maximum deposit conversion rate set at 80% to reduce the monthly rent burden on residents.
If it is difficult to prepare a large sum of money at the beginning of moving in, the deposit conversion system can be used, which lowers the deposit but increases the monthly rent. For example, lowering the rental deposit by 10 million won in exchange for paying an additional 20,833 won in monthly rent.
Eligibility for application is limited to members of households without a home, and if the eligibility is maintained, residents can live for up to 6 years (4 years basic, with a possible 2-year extension if there are no waiting applicants). Winners can move in immediately after signing the contract in May.
In cases where competition occurs during application, winners are selected based on income level ranking, and if the ranking is the same, the result of a computerized lottery is used.
An LH official said, “Since jeonse-type housing is supplied at 80% or less of the market price, it can help those who feel burdened by the recent increase in jeonse loan interest rates,” adding, “LH will continue to do its best to ensure housing stability for the public, including low-income groups.”
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