Busan City has launched the 'Newlywed Housing Loan and Interest Support Program,' starting December 26, 2024, aimed at easing the housing burden on newly married couples and fostering a marriage-friendly environment.
This initiative is part of Busan's effort to build conditions conducive to marriage and childbirth by assisting couples with housing expenses. The support program will run until January 10, 2025, with the application process facilitating increased participation by offering extended time for applications and improved financial guidelines.
The revised income threshold for applicants now allows couples with combined incomes up to 130 million won to apply, which broadens access to dual-income families facing expensive housing markets. The rental guarantee amounts have also risen from 300 million won to 400 million won, providing more options for newlyweds.
Under this program, eligible couples can enjoy annual loan interest rates as low as 2% and total interest support of up to 4 million won over two years—extendable to ten years—if conditions allow. The Korea Housing Finance Corporation underpins the loan, guaranteeing the full amount, whilst Busan Bank offers rental guarantees of up to 200 million won.
Applicants must be registered residents of Busan, recently married within the past seven years, or couples engaged to be married within three months. They must also meet specific criteria concerning income and housing rental agreements.
Woo Mi-ok, head of Busan’s Family Support Department, expressed enthusiasm for the program, saying, "Our city will continue to improve the 'newlywed housing loan and interest support project' and provide great benefits so marriage and childbirth can be happy choices." This quote highlights the government's commitment to enhancing the quality of life for young families.
The application process consists of random selection among applicants, with 400 households expected to be chosen. The results will be posted on the city’s website by January 15, 2025. Those selected will have access to loans starting January 31 through March 31, 2025.
Detailed instructions for application via the Busan Bank mobile app will be outlined for prospective applicants. According to Woo, the overarching goal is to create happier and more supportive living conditions for newly married families.
This initiative reflects broader societal priorities with the mayor's office emphasizing the need for effective policies to combat dwindling marriage rates, considering various social pressures influencing young couples today.
With housing affordability continuing to be the primary concern among young couples, programs like this could significantly influence their decisions surrounding marriage and family planning. The long-lasting effects of reducing financial barriers may redefine community dynamics within Busan.
Busan's government remains poised to assess the program’s success and iteratively refine it based on participatory feedback from the initial cohorts. Efforts to create supportive environments for families symbolize hope for invigorated demographics within urban centers, and the mayor's office remains optimistic about positive outcomes.
Overall, as this housing assistance program rolls out, Busan City aims to set benchmarks not only for its own initiatives but also as model practices for other regions facing analogous demographic challenges.
