Seoul has announced the ‘Youth Safe Housing Tenant Protection and Restructuring Plan’, expanding the upfront deposit payment targets not only to senior tenants but also to subordinate and priority tenants who were victims due to insolvent landlords last summer.
Senior tenants can receive their deposit from November, while subordinate tenants will be eligible for support from December after being recognized as victims of lease fraud by the Ministry of Land, Infrastructure and Transport. Priority tenants will also receive payments starting in December.
Currently, there are 80 Youth Safe Housing locations, totaling 26,654 households, with issues identified in four areas: Jamsil-dong Central Park (134 households), Sadang-dong Cove (85 households), Ssangmun-dong Edgar Ssangmun (21 households), and Guui-dong Ok Green Tower (56 households), involving a total of 296 households.
The city had already announced a first round of measures for senior tenants in August, operating on-site counseling stations and providing consultations and legal advice. The latest measures include expanded prepay of deposits, verification of private business operators’ financial soundness, and requests for regulatory improvements.
The deposit support is conducted through negotiations with SH and Shinhan Bank. Senior tenants who wish to vacate after registering the leasehold can receive the deposit from Shinhan Bank by signing a deposit return bonds transfer contract after the auction begins. Subordinate and priority tenants transfer the priority purchase rights of the damaged housing to SH and receive support through the same process.
Applications will be available from November, confirmed through the Youth Safe Housing Comprehensive Support Center, and processed at the Shinhan Bank Seoul City Hall branch. The city indicated it would help tenants by distributing guide materials and holding on-site briefing sessions.
To expand stable supply, Seoul will utilize the Seoul Housing Promotion Fund, scheduled to be established next year, to expand land loans and construction cost subsidies. Land costs will be subsidized up to 10 billion won at an interest rate of 2%, and construction cost subsidies will be increased from the current maximum of 24 billion won to 48 billion won.
Additionally, the city will strengthen financial soundness verification for business operators in four stages—preliminary, main, final, and operational verification—to prevent non-subscription to guarantee insurance and renewals being denied.
Seoul will also request the government for legal and institutional improvements. The main proposals include strengthening the criteria for rental business registration, adjusting the timing of guarantee insurance subscription, granting Seoul’s management authority over guarantee insurance, easing guarantee insurance renewal standards, realizing public rental purchase costs, and developing a 10-year guarantee insurance product line.
Seoul Mayor Oh Se-hoon stated, “We will ensure that youth can live safely in the Youth Safe Housing, carrying out both tenant relief and institutional improvements,” adding, “We request the government for swift cooperation in legal amendments and institutional enhancements.”