Samsung Electronics will implement an in-house housing stability support program starting next month that provides loans of up to 500 million won to employees without dwellings.
According to the industry on the 30th, Samsung Electronics will accept applications for housing fund support loans from employees without dwellings starting on the 1st of next month.
Applications are allowed if, as of the loan execution date, neither the employee nor the spouse owns dwellings, pre-sale rights, move-in rights, or officetels.
When purchasing dwellings, the program supports up to 500 million won, and when leasing, up to 300 million won. The interest rate borne by employees is 1.5% per year. Repayment is made by a method of paying principal and interest in monthly installments for 10 years after a 3-year grace period.
Eligible dwellings are priced at 2.5 billion won or less, and in the capital area and metropolitan cities, the exclusive residential area is limited to 85㎡ or less. The program was prepared under the labor-management wage agreement on May 27 and will run through 2035.
Ahead of the program's launch, inquiries to the company about detailed requirements have continued. The "frequently asked questions (FAQ)" that Samsung Electronics recently prepared for the housing stability support program includes more than 100 questions, ranging from dwellings purchases and leases to in-house married couples, pre-sale rights, refinancing loans, and repayment after retirement.
Regarding in-house married couples, only one loan is allowed per household and per dwelling. Even if employees who each received a loan before marriage later marry, if one party does not actually reside in the existing loan dwelling and therefore fails to meet the actual residence requirement, that loan must be repaid.
Employees who currently own one home can make what is commonly called a "trade-up."
The reference point for the contract timing has also been set. Contracts concluded after May 27, when the wage agreement was signed, are eligible for support. However, even if the contract date is earlier, applications are allowed if the balance due date is on or after Sept. 1.
There are also criteria for pre-sale rights. Even if the dwelling was pre-sold before May 27, if the pre-sale right was purchased afterward, eligibility to apply for a loan is determined based on the pre-sale right purchase date. The loan limit is calculated based on the pre-sale price in the pre-sale contract, and paid option costs are excluded.
Also, when purchasing a dwelling in which a tenant is residing, the existing lease contract must be terminated, the deposit returned, and the dwelling delivered by the loan execution date. Afterward, the employee must file a move-in report and actually reside there.
Samsung Electronics' housing stability support loan is not subject to the debt service ratio (DSR) regulation. However, the company noted that if financial regulations or financial institutions' screening standards change in the future, the loan amount used or the repayment amount could be reflected in DSR calculations or additional loan limit.
The loan can be repaid in full or in part. Partial repayments are allowed in units of 1 million won, and there is no early repayment fee. If the existing housing stability support loan is fully repaid and a new application is made while meeting requirements such as being without dwellings, one can apply again.
By contrast, if an employee resigns or loses employee status, the remaining principal and interest must be repaid within 17 days from the resignation date. Separate repayment standards apply when transferring to an affiliate or a subsidiary.
Meanwhile, SK hynix also recently eased its in-house dwellings loan standards through a labor-management agreement. Previously, only employees with multiple children (three or more) could borrow at 1.5% per year up to 200 million won, but this has been expanded to all married employees.