HF Releases a Compact Jeonse Guarantee for Ulsan Young Adults

- Total KRW 6.8 trillion of Jeonse and monthly rent guarantees will be supplied until the 1Q of the year, based on the MOU with the municipal government.

- Offers higher limit and lower fee rate, compared with conventional guarantee products

Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) announced on April 27 that it signed MOUs to facilitate resident stability of young adults in Ulsan city with Ulsan municipal government (Mayer Song Cheol Ho), BNK Kyongnam Bank (Executive Director Choi Hong Young), and NH Bank(Ulsan Branch Director, Hwang Seok Woong). The related Jeonse guarantee product is to be released on May 3.

With the MOUs, young adults between 19 and 34 in Ulsan city with non-homeownership can access to the guarantee product, if meeting the requirements such as income criteria and house eligibility.

The HF Guarantee covers up to 90% of the rental deposit of KRW 150M or less, with guarantee limit of KRW 135M, and applies minimum annual guarantee fee rate of 0.05%. In addition, as Ulsan municipal government reimburses the loan interest up to 3%p annually for KRW 50M loans out of total loan amount, those who meet the eligibility requirements can receive interest subsidies of up to KRW 1.5M a year.  

HF CEO Choi commented, “Through the MOU, HF will support young adults facing unstable employment or decreased income due to Covid-19 to have residential stability and a renewed hope for the better future.”

With the MOUs, HF sets out to provide the Jeonse and monthly rent guarantee products in related agreements with total 17 local governments (11 metropolitan and 6 municipal governments and counties). From 2017 to March 2021, the total accumulated supply of the guarantees amounts to est. KRW 6.8 trillion, with the average guarantee amount of KRW49M and KRW158M for young adults and newlyweds respectively.