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Busan Metropolitan City Invites Applications for Youth Rental Deposit Loans and Interest Subsidies

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it is implementing the “Youth Rental Deposit Loan and Interest Subsidy Program (Meomuljari Loan)” to help stabilize housing for young residents in Busan.

The Meomuljari Loan program is designed to reduce young adults’ housing cost burdens and help create a stable living environment by providing support for rental deposit loans and their interest payments.

Under the program, Busan Metropolitan City subsidizes annual interest rates of 2–2.5% (up to KRW 2.5 million per year) for two years (extendable up to a maximum of four years). The Korea Housing Finance Corporation guarantees 100% of the loan amount, and Busan Bank provides rental deposit loans of up to KRW 100 million.

To better meet young residents’ needs, Busan Metropolitan City has improved the program with a focus on “speed” and “simplicity,” including a shorter screening period and streamlined document submission.

Starting this year, the City has reduced the screening period from 20 days to just 5 days. In addition, the loan execution timeline has been improved so that loans can be disbursed starting from the 1st of the month following the application, instead of the 15th.

The City has also simplified the process by actively utilizing the Ministry of the Interior and Safety’s Resident Registration System, allowing applicants to omit the submission of a resident registration certificate and thereby reducing unnecessary documentation burdens.

• ●Previously required: resident registration certificate, family relationship certificate, lease agreement (3 documents)

• ●Now required: family relationship certificate, lease agreement (2 documents)

Eligibility is limited to un-housed young adult heads of household aged 19 to 39 who are registered as residents of Busan Metropolitan City as of the application date.

Applicants must meet all of the following conditions: (1) annual personal income of KRW 60 million or less and combined spousal income of KRW 100 million or less; (2) housing with a rental deposit of KRW 200 million or less and a rent-to-deposit conversion rate of 6.1% or less; and (3) payment of at least 5% of the rental deposit after signing the lease agreement. However, homeowners, recipients of basic livelihood security benefits (livelihood and housing), participants in government housing support programs, and those who have already received support under the Meomuljari Loan program are not eligible.

For further details, applicants may refer to the announcement posted on the Busan Youth Platform.

Eligible applicants may apply online through the Busan Youth Platform from 9:00 a.m. on the 1st to 6:00 p.m. on the 10th of each month. Each month, 50 applicants will be selected on a first-come, first-served basis. Results can be checked on the Busan Youth Platform on the 15th of each month. For January, applications will be accepted on a first-come, first-served basis through the 10th only.

Busan Metropolitan City’s Director General of the Youth and Industry-Academia Bureau, Kim Gwi-ok, stated, “We hope this Youth Rental Deposit Loan and Interest Subsidy Program will provide practical support for the stability of young people’s lives in Busan,” adding, “Busan Metropolitan City will continue to improve the Meomuljari Loan program and work to become a city where young people want to live.”

Busan Youth Platform