Samsung Electronics to Offer Up to 500 Million Won in Loans to Employees Without Homes; Housing in the Capital Region and Metropolitan Cities Limited to 85 Square Meters or Less

[Financial News] Samsung Electronics will introduce an internal housing stability loan program starting in September to support employees without homes, offering up to 500 million won for home purchases and up to 300 million won for leases. For homes in the Capital Region and metropolitan cities, eligibility will be limited to units with a floor area of 85 square meters or less, while no separate size limit will apply in other regions.
According to industry sources on the 15th, Samsung Electronics recently notified employees of the new "Notice on the Implementation of the Housing Stability Support Program." Applications will open on Sept. 1.
Eligible applicants are current employees without homes who signed a home purchase or lease contract after the labor-management agreement was reached on May 27. As of the loan execution date, neither the employee nor their spouse may own a home under the Housing Act, a presale right, an occupancy right, or an officetel. Employees on leave, trainees, and overseas assignees such as expatriates and academic researchers may apply after their assignment period ends.
Eligible properties include homes and officetels under the Housing Act priced at 2.5 billion won or less. Homes in Seoul, Incheon, Gyeonggi Province, and other areas in the Capital Region and metropolitan cities are eligible only if their exclusive residential floor area is 85 square meters or less. As a result, homes in Gwangju Metropolitan City are also subject to the 85-square-meter limit. By contrast, properties in areas outside the Capital Region and metropolitan cities, such as Gumi, North Gyeongsang Province, are eligible regardless of floor area as long as they meet the price requirement.
The loan limit is up to 500 million won for home purchases and up to 300 million won for leases. Employees will pay an annual interest rate of 1.5%, while the company will cover 3.1%. The interest paid by the company will be treated as the employee's personal income.
Purchase loans will be repaid over 10 years after a three-year grace period, using equal installments of principal and interest. The repayment amount will be deducted from monthly salary payments. Employees who receive the loan must move into the home within one month of the loan execution date and live there in person. For lease loans, the principal is repaid in a lump sum when the contract expires, while interest is repaid monthly through salary deductions. Employees who receive a lease loan must move in and begin living there on the day the loan is executed.
Loan applications may be submitted up to one month before the final payment date for a home purchase or lease. Earlier, Samsung Electronics labor and management agreed in their May wage and collective bargaining deal to introduce the housing stability support program to ease housing costs for employees without homes.
one1@fnnews.com Jung Won-il Reporter