Supply of 270,000 Youth Housing Units by 2025... Rent and Lease Loans Support for 400,000 People

Approval of the 1st Basic Plan for Youth Policy
Provision of 76,900 Youth-Specialized Housing Units
Support for 30,000 Students by Expanding University Dormitories

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

[Asia Economy Reporter Moon Jiwon] The government plans to supply a total of 273,000 youth housing units, including 76,900 youth-specialized housing units in urban areas by 2025. It will increase university dormitories to support the housing stability of 30,000 people and provide low-interest rental deposit loans to 400,000 young people.

The Ministry of Land, Infrastructure and Transport announced on the 31st that the "1st Basic Plan for Youth Policy" (2021?2025), which includes these details, was reviewed and approved at the 2nd Youth Policy Coordination Committee meeting held on the 23rd.

First, the government plans to supply a total of 273,000 youth housing units, including 76,900 youth-specialized housing units by 2025. This amount can accommodate more than one-tenth of all youth rental households (2.26 million households).

Rent is set at 50-95% of market prices, and essential furniture and facilities such as desks, refrigerators, microwaves, washing machines, air conditioners, built-in wardrobes, and unmanned parcel lockers are also provided.

Youth-specialized housing includes 48,900 units of "job-linked" housing combining residential, cultural, and employment functions, 20,000 units of "station area remodeling" housing utilizing offices and lodging facilities in urban areas, and 8,000 units of "dormitory-type" housing near universities.

The Ministry of Land plans to increase various types of dormitories, such as joint dormitories and happy dormitories, on and around university campuses to support 30,000 people. Dormitory fees will be made more flexible by increasing the proportion of card payments and cash installment payments to reduce the burden of lump-sum payments.

If unmarried children in their 20s living in households receiving housing benefits live separately from their parents due to study or job seeking, separate housing benefits will be provided. The number of households eligible for an average monthly housing benefit of 154,000 KRW is expected to increase from 31,000 in 2021 to 35,000 in 2025.

Additionally, the government will support low-interest rental deposit loans for 400,000 youth households by 2025. The interest rates for youth-exclusive loan products are 1.2?2.1% for jeonse (long-term deposit) loans and about 1.3% for deposit and 1% for monthly rent loans.

The government will reduce the guarantee fee burden when young people subscribe to jeonse deposit return guarantees and improve the use of rental deposit loans for young workers in small and medium enterprises (once in a lifetime) so that they can be used even when moving.

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

Public rental housing will be prioritized for low-income youth living in goshiwon (small room rentals) and semi-basement rooms, and packages including deposit, moving expenses, and daily necessities will also be supported.

Housing environments will be improved by purchasing old goshiwons and semi-basement houses and reconstructing or remodeling them into youth housing.

In particular, to crack down on illegal room splitting near universities and station areas, a separate illegal building inspector will be introduced centered on the Regional Building Safety Center. From June next year, penalties for illegal room splitting and similar violations will be increased up to twice as much.

The government will establish a "Special Meeting for Creating Good Youth Housing" to incorporate youth opinions on housing design and operation and present 10 leading models annually that reflect youth lifestyles, including floor plans, shared space configurations, and community activation plans.

To expand youth shared housing in urban areas where individuals have private independent spaces but share kitchens and laundry rooms, a shared housing fund investment of 25 billion KRW will begin next year.

With the confirmation of the 1st Basic Plan for Youth Policy, central government ministries and metropolitan local governments plan to establish and implement detailed execution plans.

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

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