SH Corporation "Residential Regeneration + Aging Countermeasures... 'Pension-type Autonomous Housing Maintenance Project' Currently Open for Applications"

[Asia Economy Reporter Yuri Kim] Seoul Housing and Communities Corporation (SH Corporation) announced on the 6th that it is developing a 'Pension-type Autonomous Housing Maintenance Project' model as part of the 'SH-type Autonomous Housing Maintenance Project' to address the aging population's housing issues, and is currently soliciting pilot projects for the first time in Korea.

If homeowners aged 60 or older participating in the SH-type Autonomous Housing Maintenance Project wish, they can sell their existing homes to the public at the cash settlement stage and resettle in public rental housing constructed on the corresponding site, receiving the sale proceeds plus interest in installments like a pension over 10 to 30 years.

Low-rise residential areas in Seoul are experiencing simultaneous housing aging and homeowner aging. Fifty-two percent of detached, multi-family, and row houses are over 20 years old, and 58% (363,000 households) of low-rise housing owner-occupants are aged 60 or older (2015 Population Census). According to a survey conducted last year by the SH Urban Research Institute targeting 500 owners of aged detached and multi-family houses aged 50 and above, 76% of respondents felt unprepared for aging, and 67% expressed willingness to dispose of their homes depending on circumstances.

According to the SH Urban Research Institute's simulation of monthly payments under the pension-type autonomous housing maintenance project, elderly homeowners with small previous asset shares or low proportional rates who cannot afford additional contributions can participate without economic loss. For example, a homeowner aged 60 or older with an asset valuation of 277 million KRW choosing the 30-year pension type is expected to receive monthly payments of 660,000 to 770,000 KRW after deducting the deposit and monthly rent for resettlement in public rental housing.

Kim Se-yong, President of SH Corporation, emphasized, "The pension-type autonomous housing maintenance project is an innovative business model that aligns with the policy direction of regenerating low-rise residential areas and responding to an aging society. If elderly people can spend their later years without worry even in cases of unavoidable income interruption due to disasters, it will reduce the burden not only on the elderly but also on their children and the nation."

Landowners and others wishing to participate in the pension-type autonomous housing maintenance project can apply until July 24. Detailed information is available on the SH Corporation website.

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