Next Year Housing Benefit Up to 16.7% Increase... Introduction of Separate Payments for Youth Households

Support Standard Rent Increased by 3.2~16.7%
Up to 480,000 KRW for a 4-Person Household in Seoul

Housing Benefits Provided to 20s Youth Previously in Housing Welfare Blind Spots

2021 Housing Benefit Infographic (Provided by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] Starting next year, the rental benefit portion of the housing benefit provided to households facing financial difficulties will increase by up to 16.7%. Along with this, young adults in their 20s living apart from their parents will also be eligible to receive housing benefits.

The Ministry of Land, Infrastructure and Transport announced on the 21st that it will raise the 2021 standard rent, which serves as the basis for rental support for tenant households, by 3.2% to 16.7% depending on household size and region, and will officially implement the "Youth Housing Benefit Separate Payment Project," which provides separate housing benefits to unmarried children in their 20s living apart from their parents within beneficiary households.

Housing benefits are programs that assist vulnerable groups facing financial difficulties by subsidizing rent (rental benefits) or supporting home repairs and maintenance (repair and maintenance benefits) to stabilize housing and improve living conditions. Eligible households are those whose recognized income is 45% or less of the median income. The selection criteria for housing benefits next year are as follows by household size: ▲1-person household 822,524 KRW ▲2-person household 1,389,636 KRW ▲3-person household 1,792,778 KRW ▲4-person household 2,194,331 KRW. Since July 2015, the government has separated housing benefits from livelihood benefits by introducing a customized individual benefit system. As of last month, 1.18 million households have been receiving these benefits.

The government plans to increase rental benefits, a part of housing benefits, by up to 16.7% compared to this year starting next year. Currently, rental benefits are paid based on the actual rent, capped at the standard rent calculated by region and household size. From next year, the government will raise this standard rent by 3.2% to 16.7% depending on household size and region.

Accordingly, for a 6-person household in Seoul, classified as a Grade 1 area, the standard rent will increase from 504,000 KRW this year to 588,000 KRW next year, a 16.7% increase. Seoul is also expected to see a high increase rate of 15.2% to 16.5% in standard rent. Areas classified as Grade 4, including the metropolitan area excluding Seoul, Sejong, and other metropolitan cities, will see an increase of 3.2% to 6.2%.

However, repair and maintenance benefits provided to homeowner households will remain at the same level as this year. The repair limits are ▲minor repairs (every 3 years) 4.57 million KRW ▲medium repairs (every 5 years) 8.49 million KRW ▲major repairs (every 7 years) 12.41 million KRW.

In addition, support for housing benefits for unmarried young adults under 30, who have been in a blind spot of housing welfare, will begin next year. Currently, unmarried young adults under 30 who live separately from their families and maintain independent livelihoods are excluded from receiving housing benefits even if they meet the criteria for a single-person household. This is because under the National Basic Livelihood Security Act, if unmarried, their resident registration is separated, but they are still considered part of the same household as their parents for livelihood and housing purposes.

For young adults under 30 to be considered separate from their parents' household, they must earn at least 40% of the median income or get married. However, if their income exceeds this threshold, they also exceed the housing benefit eligibility criteria, and it becomes difficult for low-income young adults to get married. As a result, young adults under 30 have effectively been in a blind spot for housing benefits.

However, starting January next year, unmarried young adults in their 20s will be able to receive housing benefits through the youth separate payment system. Eligible individuals are unmarried children aged 19 to under 30 within housing benefit recipient households who live separately from their parents for reasons such as schooling or job seeking.

Since this system operates within the current housing benefit framework, income and payment criteria are calculated by combining the entire household's income. To receive benefits, the total recognized income of all household members in the beneficiary household must be below the housing benefit selection criteria.

Rental benefit calculations also apply the standard for a 3-person household rather than separately applying the standards for parents (2 persons) and the youth (1 person). If the combined household income is below the livelihood benefit selection criteria, the full amount of the standard rent (or actual rent) is paid; if the income exceeds the criteria, the amount paid is the standard rent (or actual rent) minus the self-payment portion.

For separate payments, the parents and children must generally live in different cities or counties. Exceptions are allowed if the distance requires more than 90 minutes by public transportation, if living separately within a metropolitan area with both urban and rural characteristics, or if the youth has a disability.

Also, to support housing stability for youth who live separately from their parents for unavoidable reasons such as schooling or job seeking, the system plans to strengthen proper benefit management by verifying reasons for separate residence and rent account deposits. Youth wishing to receive benefits must prove their separate residence with documents such as employment or enrollment certificates and confirmation of enrollment in the four major social insurance programs. In cases of unavoidable separate residence for other reasons, benefits can be granted after verification by the welfare agency.

Applications can be made by visiting the local community service centers (eup, myeon, dong) under the jurisdiction of the parents' address. Detailed criteria for eligibility and rental benefit support methods can also be consulted through the housing benefit call center.

A Ministry of Land official stated, "With the establishment of the 2nd Comprehensive Plan for Basic Livelihood Security (2021-2023), we will continue to promote the expansion of housing benefit recipients and the realization of standard rent to support the minimum guaranteed level for beneficiary households. We plan to continuously conduct promotional activities in cooperation with related ministries and local governments to discover beneficiaries and prevent blind spots where eligible individuals do not receive housing benefits."

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