Ruling Party Think Tank: "Housing Supply Should Increase More for 4050 than Newlywed Couples in Their 30s"

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] The think tank of the Democratic Party of Korea has drawn attention by analyzing that the housing sales system should be reformed to benefit long-term homeless people in their 40s and 50s.

Kim Ki-sik, director of 'The Future Research Institute' (former Financial Supervisory Service chief), recently stated in a report titled "Suggestions on Problems and Improvement Directions of the Housing Sales System," "It is necessary to stabilize housing for newlywed couples in their 30s by supplying affordable long-term rental housing, and to reform the sales system so that the opportunity to purchase housing is given priority to long-term homeless people in their 40s and 50s."

The institute was established in 2014 by 'The Better Future,' the largest group within the Democratic Party that includes many of the so-called 86 generation such as lawmaker Woo Sang-ho and Minister of Unification Lee In-young.

The sales system, which allocates a relatively large portion of supply to special provisions for newlywed couples, is viewed as inappropriate in terms of intergenerational equity. Director Kim pointed out, "In the case of public sales, 85% of the total supply and an average of 54% in private sales are allocated to special provisions. Those in their 40s and 50s who do not qualify for special provisions can only apply for the general supply portion, which is less than 15% in public sales and less than 50% in private sales, leading to fierce competition for housing sales."

He also considered that it does not meet the equity between classes within a generation. Kim said, "The lower-middle class, who desperately need housing support, find it difficult to benefit from the special provisions for newlywed couples. Even within the 30s youth generation, only some high-income groups who can receive parental support or work in public institutions, large corporations, or financial sectors can gain the benefits of price differences, resulting in unintended consequences."

He proposed supplying affordable long-term rental housing instead of reducing the special provision supply for newlywed couples in their 30s. Additionally, to prevent households in their 40s and 50s with fewer dependents from being disadvantaged, he suggested eliminating or reducing either the dependent family bonus points in the subscription point system or the special provisions for multi-child and elderly parent-supporting households.

Kim said, "Looking at the age distribution of homeless households, those in their 40s and 50s also account for a high proportion comparable to those in their 30s. Since stable housing environments are needed due to work or children's education, and missing this period makes it difficult to seize the opportunity to own a home, the need for homeownership among homeless people in their 40s and 50s can be said to be greater than that of newlywed couples in their 30s."

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