Chungnam Province Expands Interest Support for Youth Housing Lease Deposits

Loan limit of 150 million KRW this year
Increase of 80 million KRW compared to last year
Additional interest support for youth in marriage, childbirth, and parenting

Chungnam Province announced on the 22nd that it will expand the loan limit for this year’s ‘Youth Housing Lease Deposit Interest Support Project’ and start accepting new applications from the 1st of next month.

This year, the loan limit has increased by 80 million KRW from last year to a maximum of 150 million KRW (within 80% of the lease deposit). The eligible housing has also been expanded from houses or residential officetels with lease deposits of up to 150 million KRW to those with deposits up to 200 million KRW.

The loan interest rates are NH Nonghyup Bank’s 2-year fixed rate at 5.2%, and Hana Bank’s 6-month variable rate based on the new balance COFIX (6 months) + 2.1% (5.39% as of January 16), lowered by 0.3%p and 0.5%p respectively from last year to reduce the interest burden on youth. Chungnam Province plans to support 50% of the selected interest rate (up to 3%).

This year, an additional interest support category has been introduced for youth who are married, giving birth, or raising children, providing up to an additional 1.5%p support to ease the burden on youth raising children.

The interest support targets youth aged 19 to 39 who have a residence in Chungnam (including those planning to move), excluding public sector workers considering job stability, as was the case last year.

The income criteria have been expanded from the previous ‘120% or less of the standard median income’ to ‘150% or less of the standard median income.’ The annual income standards by household size are: 40,112,000 KRW for one person, 66,287,000 KRW for two, 84,864,000 KRW for three, 103,138,000 KRW for four, and 120,523,000 KRW for five persons.

Applications can be submitted online through the Government24 website (search for Subsidy24, Youth Housing Lease Deposit Interest Support).

Chungnam Province will select eligible applicants through the first document screening, then have them undergo loan screening at their chosen banks, followed by executing the lease deposit loan and providing interest support.

A Chungnam Province official said, “We hope the Youth Housing Lease Deposit Interest Support Project will serve as a catalyst for youth to settle in the region and lead to marriage and childbirth. Especially this year, since the project has been restructured to support youth who fall into the policy blind spots of existing central government projects, we expect more young people to feel the effects of the policy.”