HF Inks MOU on Jeonse Guarantee Support for Young Adults and Newlyweds in Daegu

Korea Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) stated on December 22, 2021, that it signed an MOU with the Daegu Metropolitan City government (Mayor Kwon Young-Jin), Daegu Bank (DGB, CEO Lim Seong-Hoon), and Nonghyup Bank (NH Bank) Daegu Regional Headquarters (General Director Park Byung-Hee). Under the title ‘MOU on Jeonse Guarantee Support for Young Adults and Newlyweds in Daegu’, the MOU aims to expand the provision of HF’s Jeonse Loan Guarantee and Jeonse Deposit Return Guarantee. These HF guarantees are currently available to Daegu’s young adults* and newlyweds** who do not own a home.

  * (Eligibility) Young adults aged between 19 and 39 living in Daegu with no homeownership 

 ** (Eligibility) Newlyweds with no homeownership whose marriage was registered in the last seven years and who move to Daegu in 2022 or after

Under the MOU, for Daegu young adults and newlyweds signing a jeonse agreement with a rent deposit of KRW 200 million or less, the City of Daegu offers partial interest reimbursement* for up to KRW 50 million of jeonse loans taken out by young adults** and up to KRW 100 million of jeonse loans taken out by newlyweds** .

  * (Young Adults) 2%p support (up to KRW 1 million per year); (Newlyweds) 1%p support for newlyweds with no children, 1.3%p support for those with one child, and 1.6%p support for those with two or more children (up to KRW 1.6 million per year) 

 ** The actual loan amount and eligibility may vary depending on the applicant’s income and credit history. 

HF will provide the beneficiaries with preferential terms by offering the minimum guarantee rate of 0.02%, a 0.1%p discount from its jeonse loan guarantee rate, and raising its guarantee limit from 80% to 90% of the rent deposit.

In addition, the signing parties pledged their efforts to encourage young adults purchasing the HF Jeonse Loan Guarantee to take out the HF Jeonse Deposit Return Guarantee as well, helping them safely get their rent deposit back. Accordingly, DGB and NH Bank are set to encourage jeonse loan-seeking young customers to take out both HF’s  Jeonse Loan Guarantee and Jeonse Deposit Return Guarantee products, while the City of Daegu will pay the guarantee fee* in full for those taking out the HF Jeonse Deposit Return Guarantee for up to KRW 300 million in rent deposit. 

  * Jeonse deposit (up to KRW 300 million) × 0.04% × 2 years = up to KRW 240,000 (up to KRW 120,000 for newlyweds and other households eligible for preferential treatment) 

The jeonse loan guarantees and other benefits of the MOU will be available in the first half of 2022 after finalizing the eligibility, application, and other related details.

HF CEO Choi Joon-Woo commented, “I hope that this MOU will help reduce housing costs for young adults and newlyweds in Daegu and keep their deposits safe. HF will continue our efforts to spread the warmth of our inclusive housing finance solutions.”