[2021 Budget] Additional 4 Trillion Won Allocated by Government for Financial Support to Homeless and Expansion of Rental Housing...

Housing and Urban Fund 33.6 Trillion Won... 4 Trillion Increase from Previous Year
10.7 Trillion Won Support for Actual Demand of Homeless
Acceleration of Supply of 220,000 Public Housing Units... 19.1 Trillion Won

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The government has significantly increased the budget and funds for next year to greatly expand public housing and strengthen support for housing purchase and jeonse funds for the homeless. More funds than the previous year will be invested in housing stability for vulnerable groups struggling due to the spread of the novel coronavirus (COVID-19) and in the regeneration of deteriorated urban areas.

The Ministry of Land, Infrastructure and Transport announced on the 1st that the 2021 budget and fund operation plan have been organized at 56.7 trillion won, an increase of 6.6 trillion won (13.2%) compared to the previous year. Looking at the details, the government has additionally allocated about 4 trillion won to the Housing and Urban Fund, which is used for financial support for actual homebuyers without housing and for the expansion of rental housing supply promoted at the government level.

First, a budget of 2.1 trillion won, an increase of 400 billion won compared to this year, was allocated to strengthen the housing safety net for vulnerable groups. The Housing and Urban Fund will include 32.2 trillion won. The Ministry of Land, Infrastructure and Transport explained, "We have expanded projects centered on housing benefits for vulnerable groups facing difficulties due to the economic downturn caused by COVID-19."

In preparation for an increase in recipients next year, housing benefits were allocated 1.9879 trillion won, up 21.8% from this year. Fund investment for the supply of 220,000 public housing units also increased significantly from 16.6 trillion won to 19.1 trillion won. Through this, the government plans to supply 150,000 public rental housing units, 40,000 publicly supported housing units, and 30,000 public sale housing units.

Considering the declining preference of the public for public housing, the budget will also be invested in improving quality, such as raising support rates for construction rental housing and purchase/jeonse rental housing. In particular, the Ministry increased funds for financial support for actual homebuyers without housing, such as Buttress Jeonse Loans, Monthly Rent Loans, and Didimdol Housing Purchase Loans, from 9.4 trillion won to 10.7 trillion won, an increase of 1.3 trillion won.

The Ministry also expanded the urban regeneration and innovation district projects next year to improve the living environment and quality of life for residents in deteriorated urban areas. Urban regeneration, including urban vitality promotion projects, will receive about 918 billion won, an increase of approximately 140 billion won from this year. Investment to improve settlement conditions in innovation cities will also be greatly expanded to support the establishment of innovation cities. This includes 73.7 billion won, nearly five times the amount of this year (15.7 billion won).

Efforts will be accelerated for Green Remodeling, one of the core projects of the Korean New Deal. Green Remodeling refers to projects that enhance the energy performance of old buildings and improve efficiency to transform them into environmentally friendly buildings. Next year, the government will promote projects targeting 1,085 public buildings such as national and public daycare centers, health centers, and medical institutions, as well as 82,000 public rental housing units.

The government plans to invest more than 2.415 trillion won in Green Remodeling by 2022. Through this, it aims to provide citizens with comfortable and healthy living spaces, reduce housing cost burdens for vulnerable groups, and create many new jobs. Next year, 227.6 billion won in budget and 354.5 billion won in funds will be invested in Green Remodeling.

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