City Supports up to 50 Million Won in Jeonse Deposits for Low-Income Households

Suwon City will provide up to 50 million won in jeonse deposits to support housing for low-income households including basic livelihood security recipients.

The Korea Housing Finance Corporation's low-income jeonse rental support project, which has been in operation since 2005, targets housing of 80㎡ or less by establishing jeonse contracts and re-renting them at affordable rates to low-income households.

The allocation for Suwon City this year totals 190 households.

To this end, Suwon City received a total of 359 applications for jeonse rental support from March 28 to the 13th of last month and notified the Korea Housing Finance Corporation accordingly. Priority is given based on five scoring criteria: the period of residence in Suwon, the number of dependents, housing subscription savings payment status, and others.

For households moving into housing with a 50 million won jeonse deposit, residents must bear 5 percent, or 2.5 million won, as a rental deposit, and pay 110,000 won per month in rent, which is 3 percent of the remaining 47.5 million won.

From May to June, move-ins will begin through jeonse rights contracts between the Korea Housing Finance Corporation and landlords. The rental period is two years with a maximum of six years of residence possible.

A city official explained, "If any of the households selected as jeonse deposit support recipients withdraw from moving in, we may accept additional applications around fall this year."