From September, Households with Annual Income of 100 Million KRW Eligible for Newlywed Special Supply... First-Time Special Supply Introduced in Private Residential Areas

Government Launches Full-Scale Effort to Appease 2030 Generation

Significant Relaxation of Income Criteria for Special Supply
Households with Income up to 140% of Average Urban Workers Can Apply
Annual Income Exceeds 100 Million Won for 4-Person Household

Introduction of First-Time Special Supply for Private Housing

Hong Nam-ki (center), Deputy Prime Minister and Minister of Economy and Finance, Kim Hyun-mi (right), Minister of Land, Infrastructure and Transport, and Jin Young, Minister of the Ministry of the Interior and Safety, are moving to announce comprehensive real estate measures including strengthening the comprehensive real estate holding tax for multi-homeowners on the 10th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Lee Chun-hee] The government has initiated the expansion of subscription opportunities for people in their 20s and 30s, as proposed in the July 10 real estate measures. A special supply for first-time homebuyers will be newly established for private housing, and newlyweds with a four-person household earning up to 100 million KRW annually will also be eligible to apply for the newlywed special supply. Regarding the controversy over subscription qualification discrimination against overseas assignees, qualifications will be recognized if they reside alone abroad.

The Ministry of Land, Infrastructure and Transport announced on the 28th that it will publicly notify on the 29th the partial amendments to the "Housing Supply Regulations" and the "Public Housing Special Act Enforcement Regulations," which include these measures as follow-ups to the July 10 measures ('Supplementary Measures for Housing Market Stabilization').

On the 10th, the government expressed its intention to actively expand special supply for people in their 20s and 30s, stating, "We could not help but empathize with the earnest concerns of people in their 20s and 30s who worry that securing their own home is becoming increasingly difficult."

From now on, newlywed special supply available for four-person households earning 100 million KRW annually... No asset criteria

Special Supply Income Requirement Relaxation Plan for Newlywed Couples in Private Housing. (Provided by Ministry of Land, Infrastructure and Transport)

The most notable change is the significant relaxation of income criteria for special supply. Currently, the first-time homebuyer special supply is available only to those with an average monthly urban worker income of 100% or less in the previous year, and the newlywed special supply is limited to 120% (130% for dual-income) of the average monthly income for private housing.

For this year, only four-person households with a dual-income monthly salary of 8.09 million KRW or less can apply for the newlywed special supply. The first-time homebuyer special supply is limited to a monthly income of 6.94 million KRW for a four-person household. Notably, there is no separate dual-income exception for the first-time homebuyer special supply.

The government appears to have accepted criticism that many newlyweds with realistic home purchasing capacity are excluded from the income criteria unless they are 'gold spoon' families, leading to a significant expansion of the criteria.

For the first-time homebuyer special supply, the existing standard of 100% of the average monthly urban worker income remains for national housing. However, through this measure, a mandatory first-time homebuyer special supply of about 15% for public land and 7% for private land will be introduced for private housing, raising the income limit to 130%. For a four-person household, this corresponds to a monthly income of 8.09 million KRW.

The income ceiling for the newlywed special supply will also be raised from the current 100% (120% for dual-income) for public housing and 120% (130% for dual-income) for private housing. For newlywed hope towns priced between 600 million and 900 million KRW and private housing (limited to first-time homebuyers), the limit will be increased to 130% (140% for dual-income). For a four-person household, 140% of the previous year's average monthly urban worker income is 8,716,879 KRW. Calculated annually, this amounts to 104,602,546 KRW, meaning households earning over 100 million KRW annually can now apply for special supply.

However, asset criteria are expected to remain at current levels. Unlike the first-time homebuyer special supply, which requires real estate assets including land and buildings to be below 215.5 million KRW and, if owning a car, the car's value to be below 27.64 million KRW, there are no separate asset requirements for the newlywed special supply, which has sparked controversy over 'gold spoon' subscriptions. At the time of the announcement on the 10th, Minister Kim Hyun-mi of the Ministry of Land, Infrastructure and Transport stated, "There is nothing under review at the moment," but added, "We will consider it."

First-time homebuyer special supply introduced for private housing... 4050 generation protests 'reverse discrimination'

First-Time Special Supply Expansion Plan (Provided by the Ministry of Land, Infrastructure and Transport)

Along with the increase in income criteria for special supply, the supply volume is also expected to increase. The proportion of first-time homebuyer special supply for national housing will increase from the existing 20% to 25%. For private housing, a supply of 15% for public land and 7% for private land will be allocated for units up to 85㎡ (exclusive area), which is the size standard for national housing.

Accordingly, the total proportion of special supply, including first-time homebuyers, newlyweds, institution recommendations, multi-child families, and elderly parent support, will approach 85% for national housing, 58% for private housing on public land, and 50% for private housing on private land. Special supply will account for more than half of all housing supply types.

However, the 40s and 50s generation is strongly protesting. The Ministry of Land, Infrastructure and Transport has repeatedly explained that "even if people in their 30s cannot receive general sales due to low points, they account for the highest proportion of subscription winners through various special supplies." Since the announcement on the 10th, there have been many complaints that this increase in proportion could cause 'reverse discrimination' against the 40s and 50s generation who have accumulated points.

System improvements also address discrimination against overseas workers and children born in de facto relationships

In addition, the government plans to improve various issues that have arisen during the subscription operation process.

Regarding the controversy over discrimination against overseas workers caused by prioritizing subscription eligibility based on continuous residence in the relevant area, correction measures will be implemented. Currently, in speculative overheated districts in the metropolitan area, if a person has lived abroad for more than 90 consecutive days or a cumulative 183 days annually, they have not been recognized as eligible for priority supply given to residents with more than two years of residence.

However, going forward, for 'single assignees' who reside alone abroad due to work circumstances such as overseas assignments, the period will be recognized as domestic residence.

Eligibility requirements related to the newlywed special supply will also be improved. In January, the National Human Rights Commission pointed out that excluding children born in de facto relationships before marriage registration from eligibility is an unreasonable discrimination.

In response to this, the amendment will recognize children born in de facto relationships before marriage registration as children born during the marriage period for special supply eligibility.

Additionally, the criticism that special supply regulations for negotiated transferors exist only for land development and housing development projects within greenbelt areas, but not for public housing projects, has been accepted.

Going forward, negotiated transferors who are homeless within public housing construction project districts will also be eligible for special supply, and applicants for special supply will be given options.

The public notice period for this amendment is 40 days from the 29th until September 7. The full text of the amendment can be found on the Integrated Legislative Notification Center. Opinions can be submitted via the Integrated Legislative Notification Center, mail, fax, or the Ministry of Land, Infrastructure and Transport website.

The Ministry of Land, Infrastructure and Transport plans to promulgate and implement the amendment around September after consultations with related agencies and review by the Ministry of Government Legislation. The expansion of special supply and other measures will apply to housing complexes that apply for resident recruitment approval thereafter.

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