Recruitment of 6,000 Tenants for Purchase Rental Housing for Youth and Newlyweds

2020 Youth Newlywed Purchase Rental Housing 2nd Tenant Recruitment Infographic (Provided by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] The recruitment of tenants for about 6,000 purchase rental housing units, a type of public rental housing for youth and newlyweds, is set to begin.

The Ministry of Land, Infrastructure and Transport announced on the 6th that from the 18th, the second round of tenant recruitment for purchase rental housing for youth and newlyweds in 15 cities and provinces nationwide will commence. To enhance predictability for applicants, the ministry conducts integrated quarterly recruitment announcements by compiling recruitment details from the Korea Land and Housing Corporation (LH) and local urban corporations. The third and fourth recruitment announcements are scheduled for August and October, respectively.

The planned recruitment volume this time totals 6,031 households, with 5,350 units allocated for newlyweds and 681 units for youth. By region, 3,478 units will be supplied in the metropolitan area, including 822 units in Seoul, 923 in Incheon, and 1,733 in Gyeonggi Province, while 2,553 units will be supplied in other provinces. The recruited units are expected to be available for move-in starting July.

Looking at the benefits by type, youth purchase rental housing is supplied as fully furnished units equipped with air conditioners, refrigerators, washing machines, and more, considering the housing characteristics of youth who frequently move for job preparation and proximity to work. Residents can live for up to six years, but rent is only about 40-50% of the market price. Eligible applicants are unmarried youth aged 19 to 39 who do not own a home, with priority given to households receiving livelihood, housing, or medical benefits, single-parent families, and low-income households.

Newlywed purchase rental housing is supplied in two types: Type I and Type II. Type I, supplied in multi-family houses, has rent set at about 30-40% of market price, while Type II, supplied in apartments and officetels other than multi-family houses, is offered at 60-70%. Applicants must be newlyweds married within seven years or soon-to-be-married couples, or households without a home with children aged six or younger. For Type I, only households with an average monthly income of 70% (90% for dual-income) or less of the previous year's urban worker average income can apply; for Type II, the limit is 100% (120% for dual-income). Both types require total assets to be 288 million KRW or less to qualify.

2020 Youth Newlywed Purchase Rental Housing 2nd Tenant Recruitment Infographic (Provided by Ministry of Land, Infrastructure and Transport)

The Ministry of Land, Infrastructure and Transport urged applicants to carefully review the eligibility criteria before applying, as income verification procedures have become more stringent with the introduction of monthly income verification by household size. Previously, a uniform monthly average income standard for three-person households was applied to one- and two-person households, resulting in higher income requirements. From now on, different monthly average income standards will apply according to household size. This year, the 100% monthly average income standard is 2.64 million KRW for one-person households, 4.38 million KRW for two-person households, and 5.62 million KRW for three-person households.

The asset requirement remains the same, but the verification timing has been changed to improve convenience for tenants. Previously, asset verification was conducted before move-in, taking about six weeks until move-in. Now, verification will be done after move-in, allowing move-in in about three weeks. However, if it is found after move-in that the asset requirements are not met, penalties such as increasing the rent to 100% of the nearby market price may be imposed.

To allow more applicants to move in during this second recruitment, youth currently residing in purchase rental housing are not allowed to apply within the same city, county, or district. However, applications are freely allowed when moving to a different city, county, or district. Additionally, the criteria for newlywed purchase rental housing units that have been vacant for more than six months have been significantly relaxed to include newlyweds within 10 years of marriage or households with children aged 13 or younger.

Detailed information about the purchase rental housing supplied through this recruitment can be found in the announcement posted on the LH subscription center website after the 7th and through the My Home call center. However, the 22 youth purchase rental housing units recruited by Daejeon Urban Corporation must be checked separately on the Daejeon Urban Corporation website.

This content was produced with the assistance of AI translation services.