South Korea will create a new privately operated rental housing model lasting 20 years or more and introduce a jeonse deposit trust that places tenants' lump-sum deposits under public management, as part of a broader push to stabilize the housing market. The Ministry of Land, Infrastructure and Transport said the measures are designed to increase long-term rental supply, make jeonse deposits safer and ease pressure in both rental and home sales markets. The new long-term rental program will be added to the existing publicly supported private rental framework. To address a funding structure that has depended on bridge loans and project financing repaid through presales, the government plans to bring in long-term mortgages secured by rental housing and guaranteed by HUG (state-backed housing guarantee provider). With construction lasting three to four years and rental operations running for at least 20 years, commercial banks will be able to lend to operators for as long as 34 years without taking the underlying risk. Financial support will also be expanded. The equity investment ceiling from policy funds will rise to 14% of total project cost from 11%, the loan ceiling will increase to 200 million won from 120 million won, and the lending rate will be cut to 2.0%-2.8% from 2.6%-3.4%. Rent rules will be adjusted to fit longer holding periods: initial rent will be capped at 95% of market value, and when tenants change it can be reset to 95% of prevailing market value, improving profitability versus the current 10-year model that limits rent increases to 5% over the previous rent even after turnover. The jeonse deposit trust would let tenants place their jeonse deposit (large lump-sum rental deposit) with a rental market stabilization body, which would invest the money in HUG-guaranteed housing projects and other ventures and then pay landlords a monthly return similar to rent. The structure is intended to let tenants continue using jeonse rather than monthly rent, while reducing fears of jeonse fraud because a public body would manage the deposit. Landlords, meanwhile, could earn annual returns of about 4%-5% without arrears risk. MOLIT said HUG's PF (project financing) guarantee rate is around 4%-5%, similar to the jeonse-to-monthly-rent conversion rate for Seoul apartments of about 5%. Participation will be a key test. Land Minister Kim Yun-deok said about 20% of landlords expressed interest in a survey, adding that such participation could help stabilize the rental market and indirectly curb gap investment. Landlords who entrust a home in a regulated area of Seoul to the body and move to a regional area would be exempt from residency requirements, an incentive aimed at boosting uptake. The government plans to launch a public call for landlords in September and run a pilot within the year. The package also includes a universal public rental housing scheme for households beyond the low-income bracket. Supply will be concentrated in sought-after areas including station districts in third-phase new towns and central Seoul. More than half of units will go to young non-homeowners, with the rest allocated to non-homeowners more broadly. The basic residency period will be six years and extended whenever a child is born, while families raising three or more minor children will be allowed to stay for up to 20 years. Separately, the government will use Seoul's semi-industrial zones for housing by allowing substitute industrial-zone designation across cities and provinces and by pursuing public purchase and development of sites from factories set to relocate. Rather than rezoning semi-industrial land all at once, the policy aims to free up housing sites by moving industrial functions from Seoul to other regions. The government plans to start construction on 2,000 homes by 2030.