The Korea Housing & Urban Guarantee Corporation announced on the 3rd that starting in June, it will assess the tenant's repayment ability when reviewing the Jeonse Deposit Safety Loan Guarantee.
Until now, guarantees were possible up to 80% of the Jeonse deposit, with a limit of 400 million KRW in the metropolitan area and 320 million KRW in other regions. To prevent excessive Jeonse loans, a repayment ability criterion will be newly included in the guarantee limit calculation standards.
Previously, the Korea Housing Finance Corporation and SGI Seoul Guarantee have conducted Jeonse loan guarantee reviews by reflecting the borrower's income and existing loans. This measure will apply to new applicants from June onward. For tenants who have used existing guarantees, the current guarantee limit will remain when extending the loan.
In mid-June, an online service will be introduced on the Korea Housing & Urban Guarantee Corporation's website, allowing users to input information such as income and debt to preview the expected guarantee limit. Yoo Byung-tae, president of the Korea Housing & Urban Guarantee Corporation, stated, "Starting in May, we will apply a 90% guarantee ratio to banks and operate the system to ensure Jeonse loans are made more reasonably by considering the borrower's repayment ability."
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