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  • Seoul Offers Support in Form of No-Interest Loans for 30% of Housing Deposit for Up to 10 Years

  • SMG 1612

    The Seoul Metropolitan Government will be recruiting 2,500 individuals for the second time in 2020 under the “Deposit Support for House Rental.” The SMG will be offering support in the form of 30% of housing deposits (50% or KRW 45 million if the deposit is less than KRW 100 million) for the housing stability of houseless individuals or newlyweds.

    More specifically, 40% or 1,000 individuals out of all the applicants will be newlyweds. The newlyweds will be offered support of up to KRW 60 million as housing deposit.

    “Deposit Support for House Rental” is part of the public rental housing scheme through which the SMG eases the burden of deposits for monthly or long-term rentals so that residents can find houses in which to live that are in preferable regions.

    The rental contract will be signed between the owner of the house (lessor) and the joint tenant (the individual together with the Seoul Housing and Communities Corporation), and the deposit will be supported. Support is available even if the tenant is already living in a house that meets the criteria.

    Eligible beneficiaries include individuals living in Seoul as of the day of the announcement for recruitment without a house of their own and earning less than 100% of the average monthly income (or 120% in case of newlyweds). One should have property of less than KRW 215.5 million and a car less than KRW 27.64 million.

    Seoul Offers Support in Form of No-Interest Loans for 30% of Housing Deposit for Up to 10 Years
    Category Single Household Two-person Household Three-person Household Four-person Household Five-person Household
    100% of Average Monthly Income per Household (general) KRW 2,645,147 KRW 4,379,809 KRW 5,626,897 KRW 6,226,342 KRW 6,938,354
    120% of Average Monthly Income per Household (newlyweds) KRW 3,174,176 KRW 5,255,771 KRW 6,752,276 KRW 7,471,610 KRW 8,326,025

    The beneficiaries can benefit from long-term deposits or converted monthly deposits. The supporting funds can be provided if the long-term deposit or the added sum of the basic deposit and the converted monthly deposit is below KRW 290 million for a single household or below KRW 380 million for households of two people or more. The area of the house should be less than 60 ㎡ for a single-person household and less than 85 ㎡ for households of two people or more.

    <Target House for Supports and Amount of Support>

    Target House for Supports and Amount of Support
    Category Long-term Deposit Deposit + Monthly Rent
    Target House Area Less than 60 ㎡
    (Less than 85 ㎡ for households of two people or more)
    Deposit, etc. Security deposit less than KRW 290 million
    (Security deposit less than KRW 380 for households of two people or more)
    Security deposit + converted long-term deposit less than KRW 290 million
    (Security deposit less than KRW 380 for households of two people or more)
    Support 30% of the long-term deposit
    (up to KRW 45 million)
    (special supply for newlyweds: up to KRW 60 million)
    30% of the basic deposit
    (up to KRW 45 million)
    (special supply for newlyweds: up to KRW 60 million)
    ※ 50% of the deposit less than KRW 100 million (up to KRW 45 million)

    ※ Converted Long-term Deposit = Monthly Rent x 12 / Conversion Rate (4%) [in accordance of Article 7-2]