LH Expands Dormitory-Style Jeonse Rental Housing, Calls for Applications for 500 Units Nationwide

[Financial News] Korea Land and Housing Corporation (LH) is expanding its supply of dormitory-style jeonse rental housing to reduce the housing costs of young people, including university students. After agreeing to provide 200 units to Seoul National University by 2030, LH is recruiting operating institutions nationwide for a 500-unit program. According to LH on the 6th, dormitory-style jeonse rental housing is a program in which LH secures homes on a jeonse basis in areas preferred by young people, such as university neighborhoods and areas near subway stations, and supplies them in a dormitory-style format through operating institutions, including local governments and universities. Residents can live there at rates below market prices.
Unlike general jeonse rental housing, applicants do not need to find homes themselves. LH secures the homes first, while public funds cover the jeonse deposit except for the resident's personal contribution of 1 million won.
Seoul National University will receive a total of 200 units by 2030. LH and Seoul National University signed a related memorandum of understanding on the 4th of last month. The measure is intended to provide stable alternative housing for enrolled students during the reconstruction of aging dormitories.
Under the agreement, LH will provide jeonse deposits through its dormitory-style jeonse rental housing program. Seoul National University's operating institution, Gwanak Residence Halls, is responsible for finding homes, selecting and managing residents, and calculating usage fees, including monthly rent and other rental charges.
Thirty units were supplied first this semester. The newly built homes are located near subway stations and bus transfer facilities, and 60 young people have been living there since the 1st.
Each unit is equipped with built-in facilities, including a refrigerator, induction cooktop and air conditioner. Seoul National University also installed furniture such as beds, desks and wardrobes for the students' convenience.
Measures were also introduced to reduce residents' rental burden. LH and Seoul National University signed a mutual-benefit agreement with the building's landlord and converted as much of the monthly rent included in the rental terms as possible into a jeonse deposit.
To expand this supply model nationwide, LH will launch applications on the 7th for its dormitory-style jeonse rental housing program, covering 500 units.
Eligible applicants are local governments nationwide or universities defined under the Higher Education Act as of the announcement date. Institutions may apply individually or participate by forming a consortium of two or more institutions.
Applications will be accepted from the 19th through November 5. LH plans to select the institutions in December and sign agreements with them after evaluating their commitment to pursuing the program, implementation structure, the specificity and appropriateness of their plans, housing acquisition and operational management plans, resident support and management plans, and the sustainability of their operational management.

[email protected] Choi Ga-young Reporter