“Strengthen supports for guarantees for home rental by low-income earners"

-To make special guarantee services available to recipients of national basic livelihood benefits, etc.-

Those who have been denied financial services, such as the recipients of national basic livelihood benefits and those attempting to restore their credit, should be able to easily obtain loans for home rentals (jeonse) going forward.

Housing & Finance (HF, CEO Joo-jae Lim)) announced on June 11 that it would increase support for guarantees, starting June 18, for those who have not been able to access financial services and are attempting to obtain rental deposit (jeonse) loans from banks.

Essentially, a guarantee for home rental for up to 15 million won (or 26 million won when a public lease business proprietor has taken a preservation of claims) can be made available to the head of a household receiving national basic livelihood benefits when he or she meets certain requirements, even if he or she has a somewhat large amount of debt. Those households receiving national basic livelihood benefits that could not obtain a sufficient guarantees for rentals previously due to debt can now expect reasonable support.    

A decision was also made to raise the limit of support for individuals restoring their credit from the 10 million won to 15 million won, provided that they meet the requirements for applicants, including households that have made 24 or more repayment installments for debt to a credit recovery agency.

The timing for the submittal of a guarantee application for those planning to get married has been changed from one month prior to the expected wedding date to two months prior in order to offer them an early start in securing a home. To further improve customer convenience, a system for pre-approval before the conclusion of a lease agreement has been implemented so that customers can verify a possible amount of guarantee and the likelihood of approval before they sign a lease agreement.  

A HF official stated, "The implementation of the special measure will make it much easier for those denied financial services and those in need of housing to take advantage of the guarantee for home rental."