Samsung Electronics will support low-interest loans for employees without homes. The maximum is 500 million won, to be repaid over 10 years at an annual rate of 1.5%.
According to the industry on the 21st, labor and management at Samsung Electronics reached a tentative agreement on the 20th on a wage pact along with a performance bonus system, and decided to implement an in-house dwellings lend program to stabilize housing for union members without homes.
The loan amount varies by rank, but is capped at 500 million won, and 300 million won for jeonse deposits. The loan interest rate is 1.5%, with a choice between repaying over 10 years or a three-year grace period followed by 10 years of repayment.
Under the tentative labor-management agreement, those eligible are people without homes or owners of a single home who are selling and buying on the same day. The conditions were set strictly to support employees who truly need housing stabilization loans.
Eligible dwellings are also limited to 2.5 billion won or less, so support is not expected for ultra-high-priced homes.
As Samsung Electronics pays large performance bonuses to employees in the DS division and even introduces a loan program for employees without homes, purchases of dwellings by employees are expected to increase. The in-house dwellings lend program supported by the company is exempt from housing regulations such as the debt service ratio (DSR).
In the case of special performance bonuses received by the DS division at Samsung Electronics, they are paid in treasury shares and subject to sale restrictions, but they are expected to be usable as funds for purchasing dwellings through workarounds such as stock-collateralized loans.