[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi-do will continue the 'Deposit Support Project for Purchased Rental Housing' this year. Purchased rental housing refers to housing bought with financial support from the national or local governments or the Housing and Urban Fund, which is then rented out to low-income families, youth, newlyweds, and others.
On the 23rd, Gyeonggi-do announced that it will carry out the 'Deposit Support Project for Purchased Rental Housing for Low-Income Families' on a scale of 1,200 units this year, providing 50% of the standard rental deposit (up to 2.5 million KRW) for newly moving-in households in purchased rental housing to ensure housing stability for low-income groups.
The support targets are ▲ newly moving-in households in purchased rental housing located within the province (excluding contract renewals) ▲ households applying for conversion deposits to reduce monthly rent among newly moving-in households ▲ and households requiring emergency housing support.
The standard rental deposit for purchased rental housing averages 5.2 million KRW, which is relatively higher than deposits for other rental housing. This has led to cases where vulnerable groups such as basic livelihood security recipients, near-poverty groups, and persons with disabilities give up even after being selected as tenants. In response, the province has been implementing the 'Deposit Support Project for Purchased Rental Housing for Low-Income Families' since 2017, supporting a total of 4,616 units up to last year.
The support procedure involves prospective tenants applying directly for the support fund to Gyeonggi Housing and Urban Corporation (GH) or Korea Land and Housing Corporation (LH). If selected as support recipients, they pay the remaining balance excluding the support deposit. To this end, 3 billion KRW from the Gyeonggi-do Housing Welfare Fund will be invested. The supported deposit amount is lent interest-free for up to 20 years and must be repaid in a lump sum upon moving out.
Kim Tae-cheol, head of the Housing Welfare Team in the province, said, "We expect this to help stabilize housing by reducing the housing cost burden for low-income groups in this high-interest era," adding, "We will further expand housing cost support projects for vulnerable groups within Gyeonggi-do."
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