Interest-Free Jeonse Loans Up to 50 Million Won for Ssokbang and Goshiwon Tenants

From April 10, Applications Open for Betimmok Jeonse Loan
5,000 Households This Year... 400,000 Won Support for Moving Expenses

Homeless tenants living in jjokbang (small rooms), goshiwon (boarding rooms), and semi-basement apartments will be able to move to better housing by receiving interest-free jeonse loans of up to 50 million KRW.

The Ministry of Land, Infrastructure and Transport announced on the 30th that starting from the 10th of next month, it will begin accepting applications for the Buteummok Jeonse Loan to support housing upgrades for residents living in substandard accommodations, with a limit of 5,000 households. This is a follow-up measure to the "National Housing Stability Realization Plan" announced in August last year.

The eligible applicants are homeless household heads who have lived for more than three months in jjokbang, goshiwon, PC rooms, or underground floors prone to disasters, and meet the income requirement of 50 million KRW or less and asset requirement of 361 million KRW or less. The housing conditions include a rental deposit of 200 million KRW or less and an exclusive area of 85㎡ or less (60㎡ or less for single-person households). The loan period is a 2-year maturity with lump-sum repayment, and it can be extended four times in 2-year increments.

The Ministry expects that by providing interest-free loans of up to 50 million KRW for up to 10 years, residents can upgrade their housing from monthly rent with deposit to guaranteed monthly rent housing. For example, a resident currently paying 300,000 KRW monthly rent could move to a house with a 50 million KRW deposit plus 300,000 KRW monthly rent.

To apply for the loan, applicants must obtain a certificate of residence in substandard housing from the community service center and submit it along with the lease contract and other required documents to the participating banks, which include Woori Bank, KB Kookmin Bank, NH Nonghyup Bank, Shinhan Bank, and Hana Bank. Banks will review the documents and provide the loan, but since only 5,000 households will be accepted this year, applications may close early if funds are exhausted.

Those who pass the loan screening and confirm relocation can also receive actual expense support of up to 400,000 KRW for moving costs and daily necessities. Applicants must bring the bank’s loan agreement and expense proof documents to the community service center in the area of the new residence to apply.

Since early this year, the Ministry has been prioritizing the supply of public rental housing to vulnerable groups living in jjokbang and underground floors, providing interest-free loans of 500,000 KRW for deposits upon move-in. Moving expenses are also supported up to 400,000 KRW based on actual costs.

Lee Sang-joo, Director of Housing Welfare Policy at the Ministry of Land, Infrastructure and Transport, said, "In this era of high interest rates, we have expanded support so that vulnerable groups living in semi-basements and similar housing can move to better homes through interest-free deposit loans. We will continue to strengthen support for housing-vulnerable groups."

For more detailed information about loan support, please visit the Housing and Urban Fund website.