Busan is good

Busan Metropolitan City Signs Agreement to Support Guarantee Services for Housing Units for the Ministry of Oceans and Fisheries Personnel, Establishing a Stable Residential Support Framework

내용

Busan Metropolitan City Mayor Park Heong-joon announced yesterday (25th) that the City signed a written “Agreement on Supporting Guarantee Services for Housing Units Provided in Line with the Ministry of Oceans and Fisheries’ Relocation to Busan” with the Korea Housing & Urban Guarantee Corporation (HUG) and the Busan Metropolitan Corporation (BMC).

This agreement aims to prevent in advance the risk of non-retrieval of jeonse deposits that may arise from landlord bankruptcy or financial deterioration during the process of leasing 100 apartment and officetel units to be provided as housing units for Ministry of Oceans and Fisheries (hereinafter “MOF”) personnel relocating to Busan, thereby ensuring fiscal stability for the project.

The “Housing Unit Support Project” is being carried out by entrusting the project to the Busan Metropolitan Corporation (BMC). Under this project, BMC will lease 100 apartment and officetel units for four years, from next month until November 2029, and provide them to the MOF as official housing.

Under this agreement, the City will offer administrative support for the issuance of HUG’s Jeonse Deposit Refund Guarantee*, while HUG will support guarantee screening, appraisal, and other related procedures. BMC will provide information necessary for guarantee issuance and oversee housing management.

* Jeonse Deposit Refund Guarantee: A guarantee in which the insurer is responsible for refunding the jeonse deposit that a landlord must return to the tenant at the end of the lease.

The Korea Housing & Urban Guarantee Corporation (HUG) will also offer consultation and guidance related to information required for guarantee issuance, including procedures such as appraisal for applying for the Jeonse Deposit Refund Guarantee, and will support expeditious guarantee screening.

The Busan Metropolitan Corporation (BMC) will provide and share information required for guarantee issuance by HUG and manage the relevant housing, including tasks related to move-ins and move-outs to ensure the smooth implementation of the Jeonse Deposit Refund Guarantee.

Through this agreement, the City has established a foundation to minimize risks of jeonse deposit losses by utilizing the Jeonse Deposit Refund Guarantee system, thereby ensuring that the housing support project can be implemented safely and predictably.

Additionally, the City and BMC will receive professional support from HUG throughout the guarantee process—from guarantee counseling to screening—which will further strengthen the stability of the project.

The parties plan to complete preliminary consultations this month regarding lease contracts and related documents, and the City plans to enter into jeonse agreements with apartment owners in early next month to provide housing units for MOF personnel relocating to Busan.

Mayor Park Heong-joon stated, “This agreement is highly meaningful as it establishes a foundation for MOF relocating personnel and their families to settle in Busan without financial burden,” adding, “We will continue to work closely with relevant institutions to ensure the successful relocation of public agencies and to contribute to revitalizing the local community.”