SH Corporation to Supply 4,000 Existing Housing Jeonse Rentals This Year

Expanded by 1,000 Households Compared to Last Year
Up to 190 Million KRW Supported with 1-2% Fixed Annual Interest Rate
New Newlywed and Newborn Categories Established Starting This Year

Seoul Housing and Communities Corporation (SH Corporation) announced on the 25th that it will increase the supply of existing housing jeonse rental units by 1,000 units, providing a total of 4,000 units this year.

SH Corporation will announce the recruitment of tenants for existing housing jeonse rental units on February 5. Applications can be submitted by visiting the local community service center in the jurisdiction area. Recruitment for newlywed and newborn types of jeonse rental housing will begin on February 22. Applications can be made through the corporation’s subscription website.

The existing housing jeonse rental project is a system where SH Corporation signs a jeonse contract with private housing owners and then re-rents the property to tenants at affordable rents. Government policy funds are provided at an annual interest rate of 1-2% to support basic livelihood security recipients, elderly people, newborn households, and (prospective) newlyweds to live stably. The support limit ranges from 123.5 million to 192 million KRW depending on the winning type.

The newlywed couple type will be revised to the newlywed and newborn type starting this year. Regardless of the marriage period, those with children born within two years are eligible tenants. The Newlywed and Newborn Type I is supplied to households with an average monthly urban worker income of 70% (90% or less for dual-income households), and Newlywed and Newborn Type II is supplied to newborn households and newlyweds with an average monthly urban worker income of 100% or less, as well as single-parent families with children under six years old.

The types supplied through jeonse rental include ▲priority 1: livelihood and medical benefit recipients, single-parent families, urgent housing support households, disabled households with an average monthly urban worker income of 70% or less, and elderly people ▲priority 2: households with an average monthly urban worker income of 50% or less, and disabled households with an average monthly income of 100% or less.

SH Corporation mandates subscription to guarantee insurance and continuously monitors the registry to enhance applicants’ convenience and ensure residence without worries about jeonse fraud.

When moving into jeonse rental housing, the entire lease deposit is insured under guarantee insurance. If a deposit non-return incident occurs, SH Corporation establishes a leasehold registration and claims insurance money. Changes in the registry such as seizure or mortgage are monitored in real time to verify whether the tenant’s opposition power and priority repayment rights are secured. If necessary, proactive measures such as contract termination are taken to prevent deposit non-return incidents.

To alleviate difficulties for prospective tenants in searching for housing, SH Corporation has also launched a dedicated service for 'SH Lease-type Public Housing' on the KB Real Estate platform. Previously, tenants had to search for housing through licensed real estate agents in the desired area, but now they can browse listings on the KB Real Estate app. If a contract is concluded using KB Real Estate, SH Corporation plans to support the landlord’s brokerage fees as well.

Kim Heon-dong, President of SH Corporation, said, "Public rental housing usually requires a long time from winning to moving in, but the ‘existing housing jeonse rental’ has the advantage of significantly shortening this period," adding, "We will do our best to create conditions that allow prospective tenants to live stably near their current residence in a shorter time."