Seoul to Provide Up to 7.2 Million Won in Housing Support for Homeless Households with Newborns... Eligibility Extended to Jeonse Deposits of Up to 500 Million Won

Jeonse Deposit Cap Raised from 300 Million to 500 Million Won
Application Period Significantly Extended

Seoul cityscape. Photo by Yonhap News

The Seoul Metropolitan Government is lowering the eligibility threshold for its housing support program to assist households without homes who are struggling with housing costs after the birth of a child. The city has eased the application requirements for the "Housing Cost Support Program for Childbirth in Homeless Households," which provides up to 7.2 million won in housing assistance over two years.

Starting this year, the city announced on February 1 that the housing eligibility for support will be relaxed from a jeonse deposit of up to 300 million won (monthly rent of up to 1.3 million won) to a jeonse deposit of up to 500 million won (monthly rent of up to 2.29 million won). The application period, which was previously limited to about five months last year, will now be open year-round. However, for qualification review and payment, applications will be accepted twice a year through recruitment announcements in the first and second halves of the year.

The core purpose of the housing cost support for homeless households with newborns is to provide practical financial assistance (housing costs) so that families do not leave Seoul due to the burden of high housing prices after childbirth.

For each household, the program provides up to 300,000 won per month for two years, up to a maximum of 7.2 million won, to cover the difference in housing costs between Seoul and the surrounding metropolitan area, for either actual jeonse loan interest or monthly rent expenses. In the case of multiple births or additional childbirths, the support period can be extended by one to two years beyond the initial two years, for a maximum of four years.

If a family has an additional child during or after the support period, the support will be extended by one year per child, up to a maximum of four years. In cases of multiple births, support is extended by one year for twins and two years for triplets or more.

From the program's launch in May last year until the end of the year, a total of 654 households received an average of 1.8 million won in housing support per household. Of all participating households, 66% were living in rental housing, and more than 78% of these were paying monthly rents of 600,000 won or more.

Participant A, who is raising three children, shared, "Due to the burden of interest on the jeonse loan, I switched to monthly rent, which meant I had to cut back on my children's education and food expenses. After being selected for the housing support program following the birth of my third child, I have been able to provide better meals for my children and keep the boiler running during the cold winter, allowing us to enjoy a warmer daily life."

The types of housing among supported households were as follows: multiplex and multi-family homes (36%), apartments (25%), and detached or multi-household homes (21%). 86% of the supported households lived in small homes with a dedicated area of 60 square meters or less, and they were found to be bearing high fixed monthly expenses for jeonse loan interest or monthly rent.

Regarding monthly rent burdens, 22% paid less than 600,000 won, 35% paid between 600,000 and 800,000 won, 26% paid between 800,000 and 1 million won, and 17% paid between 1 million and 1.3 million won. In total, 78% of rental households were paying monthly rents of at least 600,000 won and up to 1.3 million won.

For the first half of this year, households that had a child after January 1 of last year are eligible to apply, with applications accepted from February 2 to June 30. The recruitment announcement for the second half will be made separately in July. For the second half, only households that gave birth within one year prior to the application date are eligible, so those who had a child between January 1 and June 30 of last year must apply during the first half application period.

Eligibility requirements include being a homeless household that has given birth to a child, having a household income at or below 180% of the median income, and residing in a rental home in Seoul with a jeonse deposit of up to 500 million won or a monthly rent (converted amount) of up to 2.29 million won. Households currently benefiting from public rental housing, Seoul City’s rental deposit interest support, or other government or Seoul housing support programs are excluded.

Applicants for the first half of this year will undergo eligibility verification, with results announced in July. Proof of housing expenses must be submitted. Once housing expense verification is complete, the housing support will be paid in August.