Dual-Income Newlyweds Eligible for Special Housing with Monthly Income of 8.89 Million Won... 10-Year Residency Restriction for Resale Violations

Government Announces Legislative Notice for Amendment to Housing Supply Regulations

(Data from the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Moon Jiwon] The income criteria for special supply (hereinafter referred to as special supply) for newlyweds and first-time homebuyers in private housing will be relaxed by 20-30 percentage points. This is expected to increase opportunities for newlyweds and others who previously could not even apply for special supply due to not meeting the income criteria. Couples earning 8.89 million KRW per month as dual-income households with three members will also be able to apply for newlywed special supply.

Additionally, the government will establish a system that restricts the eligibility of occupants for 10 years for those who violate resale restrictions.

The Ministry of Land, Infrastructure and Transport announced on the 4th that it will give legislative notice on the 5th of the "Partial Amendment to the Housing Supply Regulations" containing these details.

Earlier, on the 14th of last month, the government revealed plans to improve income requirements for newlywed and first-time special supply at the 8th Real Estate Market Inspection Meeting of related ministers.

The purpose of this amendment is to support opportunities for homeownership for genuine demanders without housing and to improve the subscription system to protect the rights of subscribers.

Currently, the income criteria for newlywed special supply in private housing are set as follows: 75% of the supply (priority supply) is for those earning 100% (120% for dual-income) or less of the average monthly urban worker income, and the remaining 25% (general supply) is for those earning 120% (130% for dual-income) or less. For general supply, only those purchasing homes priced at 600 million KRW or more for the first time apply the 130% (140% for dual-income) limit.

However, going forward, the priority supply ratio will be adjusted from 75% to 70% and operated under the same criteria as now, while the general supply ratio will increase to 30% and the income criteria will be relaxed to 140% (160% for dual-income). As a result, based on last year's standards, households with a pre-tax income of up to 7,776,976 KRW per month (8,887,973 KRW for dual-income) for households of three or fewer members will be able to apply for newlywed special supply.

If a priority supply candidate fails to be selected, they will be given an additional opportunity to compete once more with general supply candidates.

(Data from the Ministry of Land, Infrastructure and Transport)

The government will also introduce regulations for "prior notification of the expected move-in date" and "designated move-in period" to support stable occupancy for subscribers.

Currently, project operators only roughly indicate the expected move-in date in the recruitment announcement and supply contract. If the expected move-in date changes in the announcement or contract, they notify individuals separately.

However, some project operators have frequently caused inconvenience to subscribers by notifying the move-in date earlier or later than the date indicated in the recruitment announcement, causing difficulties in preparing the balance payment or disposing of existing homes.

Therefore, the Ministry of Land, Infrastructure and Transport will require project operators to notify the expected move-in date at least two months before the actual possible move-in date and to specify this in the supply contract to support stable occupancy for subscribers.

Currently, project operators set a designated move-in period and accept applicants' preferred moving dates to avoid concentration of moving days, but some project operators arbitrarily set the designated move-in period, causing significant inconvenience.

The government will set the designated move-in period to at least 60 days for medium to large complexes with 300 or more households, and at least 45 days for small complexes with fewer than 300 households, considering the number of supplied units and facilities requiring moving.

The government also established restrictions on eligibility for occupants who violate resale activities. Currently, those who disrupt supply order through false residence registration or issuing false pregnancy certificates are restricted from eligibility for 10 years from the date of detection, but there are no subscription restrictions for those who violate resale restrictions.

Through system improvements, the government plans to restrict eligibility for occupants who violate resale restrictions (including intermediaries) for 10 years from the date of detection, the same as those who disrupt supply order. This will take effect from February 19 next year.

Furthermore, according to the plan announced by the Administrative City Construction Agency last September, repetitive new institution workers such as teachers will be excluded from special supply eligibility. New or transferred employees of other special supply target institutions have been excluded from special supply since January this year.

In addition, long-term military personnel with over 25 years of service recommended by the Minister of National Defense will have relaxed prior residence requirements only in the metropolitan area excluding speculative overheated districts. Efforts to purify terminology, such as replacing Japanese-style terms like 'jeori' with 'jeogeumri' (low interest rate) as part of promoting the use of Korean language, will also be pursued.

The legislative notice period is from the 5th to the 14th of next month. The amendment will be promulgated and enforced in January next year after consultations with related agencies and review by the Office for Government Policy Coordination.

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