Income Criteria for Newlywed Special Housing Relaxed to 160%... Benefits for 144,000 Households (Update)

At the 8th Real Estate Market Inspection Meeting of Relevant Ministers

First-Time Special Supply Quota Increased by 30% with Income Criteria Relaxed by 30%P
Hong Nam-ki: "Housing Stability Effects for Existing Tenants Begin to Appear After Implementation of the Three Lease Laws"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (center), is delivering opening remarks while presiding over the "8th Real Estate Market Inspection Meeting of Related Ministers" held on the 14th at the Government Seoul Office in Gwanghwamun, Seoul.

[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to relax the income criteria for newlywed special supply up to 160% to expand housing supply opportunities for actual demanders. As a result, 144,000 newlywed households without homes will qualify for special supply application.

On the 14th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, chaired the 8th Real Estate Market Inspection Meeting at the Government Seoul Office and announced the 'Special Supply System Improvement Plan to Expand Housing Supply Opportunities for Actual Demanders' containing these details.

Previously, the government expanded the first-time special supply quota in the July 10 measures and announced plans to increase housing supply in the Seoul metropolitan area and other metropolitan areas in the August 4 measures. In addition, starting January next year, the income criteria for newlywed and first-time special supply will be further relaxed so that more actual demand groups, such as dual-income households, can have more opportunities to own homes.

Currently, for public housing, newlyweds can receive special supply if their income is 100% or less of the average monthly urban worker income (120% for dual-income households). For private housing, 75% of the special supply quota can be applied for if income is 100% (120% for dual-income), and the remaining 25% if income is 120% (130% for dual-income) or less.

Starting January next year, for 30% of the special supply quota, this income criterion will be further relaxed by 20-30 percentage points for both public and private housing. The remaining 70% will maintain the 100% (120% for dual-income) standard. For 30% of the general quota of newlywed special supply in public housing, the income criterion will be 130% (140% for dual-income), and for private housing, 140% (160% for dual-income).

Deputy Prime Minister Hong said, "Through this, about 92% of newlywed households without homes will qualify for special supply applications," adding, "Compared to the existing eligible newlywed households, about 81,000 households in public sales and 63,000 households in private housing are expected to newly receive special supply opportunities."

Along with this, the government also plans to relax the income criteria for first-time special supply. While 70% of the special supply quota will maintain the current criteria (100% for public, 130% for private), the income criteria for the remaining 30% will be relaxed by 30 percentage points.

Regarding the recent jeonse (long-term lease) market, Deputy Prime Minister Hong said, "Although the price increase rate is gradually slowing down, unlike the stable sales market, the upward trend continues," and added, "We will closely inspect and discuss the factors driving jeonse price increases among related ministries."

Deputy Prime Minister Hong evaluated that the housing stability effect for existing tenants has begun to appear after the implementation of the three lease laws: the Jeonse and Monthly Rent Reporting System, the Jeonse and Monthly Rent Cap System, and the Lease Renewal Request Right System. He said, "In September, when the exercise of the renewal request right began, the renewal rate of public guarantees (under 500 million KRW) recorded the highest figure of the year, and renewal contracts are increasing," adding, "If the system settles, the housing stability effect for existing tenants is expected to expand further."

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