Chuncheon City to provide interest-free rental deposits of up to 20 million won for SME workers

【Financial News, Chuncheon = Kim Gi-seop】Workers who do not own a home and are employed by small and medium-sized businesses in the Chuncheon area will be eligible for an interest-free rental deposit of up to 20 million won before paying the remaining balance, provided they have obtained a fixed-date stamp on their lease contract.
According to Chuncheon City on the 18th, the city will accept applications for the second round of its rental deposit assistance program for SME workers from the 19th through the 30th. The housing support policy aims to reduce housing costs for workers at local SMEs while helping businesses secure a stable workforce and retain employees long term. A total of 125 million won has been allocated for this second round. Application instructions and detailed requirements are available in the city’s notice.
The main change in this round is a substantial easing of the restrictions on when applicants can apply. Until now, applicants had to pay the remaining balance on their lease and complete their move-in registration before applying. Starting with this round, they can apply before moving in as long as they have a lease contract with a fixed-date stamp. The change responds to requests from businesses and workers who said it was difficult to obtain assistance at the stage of preparing to move in, when securing a deposit is most urgent. It is expected to ease the burden of raising a large sum at once and make the program more effective.
Eligible applicants are workers who do not own a home and are employed by SMEs headquartered or operating in Chuncheon. The city will lend up to 20 million won per household interest-free for an initial two years, with one possible two-year extension, for a maximum term of four years. Homeowners and residents of public rental housing are among those excluded. Workers who apply before paying the remaining balance and filing their move-in registration must complete those procedures and submit supporting documents within 30 days of receiving the funds.
In the first round earlier this year, the city provided a total of 75 million won to five workers at three companies. Including the budget for this second round, the program’s total funding for the year will reach 200 million won.
A city official said, “We have lowered the barrier to make support available from the stage of preparing to move in, as long as applicants have obtained a fixed-date stamp. With interest-free deposit assistance, we will help workers put down roots in Chuncheon and help local SMEs retain the staff they need for longer.”

[email protected] Kim Gi-seop Reporter