"60 Million KRW Interest-Free Support"... Seoul City Expands Long-Term Safe Housing Project

Seoul City announced on the 14th that it will expand the implementation of the ‘Deposit Support Long-term Safe Housing,’ which provides interest-free support for part of the jeonse or monthly rent deposit to homeless citizens.

Seoul City raised the maximum deposit support amount for general supply from the previous 45 million KRW to 60 million KRW. The maximum support amount for special supply remains the same at 60 million KRW. In addition, the income criteria for 1- and 2-person households among eligible residents were relaxed by 20 percentage points and 10 percentage points, respectively, considering the high demand from 1- and 2-person households.

The upper limit for the target housing jeonse deposit was raised from the previous 380 million KRW to 490 million KRW. When households living in semi-basement units move to above-ground floors, an additional moving expense of up to 400,000 KRW will be provided.

Seoul City Hall
Photo by Asia Economy DB

The city will accept applications from new residents wishing to move into the Deposit Support Long-term Safe Housing from the 27th to the 31st of this month. Eligible applicants are homeless household members registered in Seoul as of the recruitment announcement date, the 15th of this month, whose household income is 100% or less of the previous year’s average monthly urban worker income (120% or less for special supply). Owned real estate must be 215.5 million KRW or less, and vehicles must have a current value of 36.83 million KRW or less.

Starting from this recruitment, a ‘Household Integration Special Supply’ has been newly established and will accept separate applications. Eligible applicants are homeless citizens who have been continuously supporting direct ascendants (including the spouse’s direct ascendants) aged 65 or older for more than three years. The supported housing includes ‘pure jeonse housing’ and ‘deposit-based monthly rent housing.’ The sum of the jeonse deposit for pure jeonse or the basic deposit and jeonse conversion deposit for deposit-based monthly rent must be 490 million KRW or less. The exclusive area of the target housing is 60㎡ or less for single-person households and 85㎡ or less for households of two or more persons.

If the conditions for the Housing and Urban Guarantee Corporation (HUG)’s Buttress Loan are met, additional buttress loans for jeonse or monthly rent deposits are also possible. However, when consulting for the buttress loan, applicants must inform that they are receiving support from Seoul City. Support can be renewed every two years for up to 10 years, and brokerage fees that landlords (housing owners) must pay will be covered by city funds. The list of eligible residents will be announced on June 2.

Han Byung-yong, Director of Seoul City’s Housing Policy Office, said, “Long-term Safe Housing has high satisfaction as it supports homeless citizens in finding suitable homes in their desired areas and living stably,” adding, “We will continue to improve any shortcomings so that this becomes a housing support project that citizens can truly feel.”