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Seoul gov’t to cover housing deposits for young

June 27,2017
The Seoul city government will cover up to 30 percent of housing deposits for young city residents, up to 45 million won ($39,663) per person, to help them find more affordable housing options near highly connected areas in the center of Seoul.

“Under its 2030 Youth Housing project to provide more housing space for young adults near subway stations, the Seoul Metropolitan Government intends to cover up to 30 percent of their rent deposit, and up to 45 million won per person,” the city government said in its statement on Monday.

“Qualified applicants are those in their 20s and 30s who earn less than 70 percent of the average monthly salary of employees in cities,” it continued. “The qualified housing is less than 60 square meters [646 square feet] in size with a rent deposit of less than 220 million won for a one-person home, and less than 330 million won for a two-person home.”

Last year, the average monthly salary of employees in cities in Korea was 2.42 million won for one-person household and 3.73 million won for a two-person household.

The city government intends to provide 200,000 housing units for young adults by 2030, as part of its 2030 Youth Housing project put forward from March last year. Through the project, the city government plans to transform pockets of commercial or semi-residential areas near subway stations into residential spaces.

The private developers would be granted permission by the city government to transform a commercial or semi-residential area into a residential area. They in return agree to rent out apartments and houses for at least eight years before trying to develop the space for another purpose.

The Seoul Metropolitan Government will set apart 10 to 25 percent of newly built housings for university students, newly recruited employees and newly weds, at a rate of 60 to 80 percent of the price of housing in the neighborhood, according to the city government.

“The housings near subway stations were normally targeted by real estate agencies for profit-making, but once these housings are rented by young adults, it will help young adults to cope with skyrocketing housing prices in these areas,” the city government said in its statement. “The project will also help many young adults from being pushed out to the suburb because of the unaffordable housings in main areas of the city.”

The city government said it will secure 15,000 housings for the 2030 Youth Housing project by the end of the year, and that the first batch of applicants will start living in these spaces from the latter half of next year.

BY ESTHER CHUNG [chung.juhee@joongang.co.kr]