HF Signs Agreement with Seongnam City on Rental Assistance for Non-Homeowning Young Adults  

- The total of HF jeonse and monthly rent loan guarantees provided under its MOU with local governments through this May reaches KRW 7.3 trillion  

- The guarantees offer a higher maximum amount and a lower fee rate compared to conventional guarantee products

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) announced on July 1, 2021 that HF has signed an MOU with Seongam City (Mayor Eun Soo-Mi) and NH Bank (Seongnam Branch General Manager Oh Seung-Chul) on rental assistance for Seongnam young adults and will launch the Seongnam Young Adults’ Jeonse Loan Guarantee on July 5, 2021, under the MOU <See the image below>.

The MOU’s target group is non-homeowning young adults aged 19 to 34 living alone in Seongnam City, Gyeonggi Province. The HF guarantee product is available to young one-person households in the city that meet certain income and rent requirements. The beneficiaries will be able to borrow 90% of their rent deposit within the maximum amount of KRW 50 million. Applications will be open at the official webpage of Seongnam City, and detailed eligibility requirements will be published in a public notice from the city. 

Under the MOU, HF will fully guarantee these loans at the lowest annual guarantee fee rate of 0.02%. Seongnam City Government will pay up to 3.0% points of the interest on loans of KRW 50M or less. This translates into an interest savings of up to KRW 1.5M a year for eligible Seongnam young adults. In fact, the loans are offered at interest rates that are virtually zero, given that average jeonse loan rates in the market are below 3%. 

HF CEO Choi Joon-Woo said, “We hope that this MOU will be able to help rent-burdened young adults find a place to live and renew their hopes and dreams of a better future. We will continue our partnership with local governments to extend the reach of the government’s inclusive housing finance policy for young adults.”

With this MOU, HF will provide jeonse and monthly rent loan guarantees in partnership with a total of 18 local governments (11 metropolitan and 7 municipal governments). From 2017 to May 2021, HF has provided a total of about KRW 7.3 trillion in loan guarantees through its partnerships with local governments. On average, KRW 49M and KRW 159M in loan guarantees have been offered to each one-person young adult household and newlywed couple, respectively. 

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On July 1, 2021, Korea Housing Finance Corporation signed the MOU on Interest Assistance for Seongnam Young Adults’ Rental Deposit Loans to improve housing welfare for young adult renters with no homeownership. After the signing ceremony held at the Seongnam City Government Office, HF CEO Choi Joon-Woo, Seongnam Mayor Eun Soo-Mi, and NH Bank Seongnam Branch General Manager Oh Seung-Chul (from left) posed for a photo.