Busan City Continues Support Program for Youth Rental Deposit Loan Interest

Promotion of 'Meomuljari Loan' for Housing Stability in 2023

Monthly Applications from 1st to 10th, Recruiting Eligible Applicants

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Busan City will continue to implement the ‘Meomuljari Loan’ in 2023, which supports the loan interest on rental deposit loans to alleviate the housing cost burden of young people and create a stable housing environment.

The ‘Meomuljari Loan’ is a program where Busan City supports an annual loan interest rate of 2%, up to 2 million KRW per year, for 2 years (extendable up to 4 years). The Korea Housing Finance Corporation guarantees 100% of the loan amount, and Busan Bank provides rental deposit loans up to 100 million KRW.

In response to the recent sharp rise in loan interest rates, the city consulted with the contracted banks regarding the 2023 project to ease the housing cost burden on young people. However, due to the already increased base interest rate, the loan interest rate was inevitably raised from 2% per annum to 4% per annum. Of this, the city supports 2% per annum, and the borrower’s burden is 2% per annum.

Compared to 2022, the difference is that while applications were submitted quarterly in 2022, in 2023 applications can be submitted monthly, giving young people more opportunities to apply than before.

Busan City Stay Support System.

Applications are accepted from February, from 9 a.m. on the 1st of each month until 6 p.m. on the 10th, and the selection results are announced at the end of each month.

The eligibility criteria are ▲young household heads aged 19 to 34 without homeownership, registered as residents in Busan City as of the application date ▲annual income of the applicant (or combined income of a couple) of 40 million KRW or less ▲rental deposit of 200 million KRW or less and a jeonse-to-monthly rent conversion rate of 6.1% or less ▲and payment of at least 5% of the deposit after signing the lease contract.

However, homeowners, basic livelihood security recipients (living and housing), participants in government housing support projects, and those who have previously received support from the Meomuljari Loan are not eligible to use the Meomuljari Loan.

Detailed information can be found in the announcement on the Busan Youth Platform.

Mayor Park Hyung-jun said, “The recent rapid rise in market interest rates has seriously increased the housing cost burden for young people,” adding, “I hope this loan interest support project will reduce the housing cost burden for young people even a little, and we will continue to create a city where young people want to live through various customized youth policies.”