Government: "Reduce Jeonse Rentals for Newlyweds, Increase Quotas for Youth"

Supply of 5,000 Youth Area Rental Lease Units
3,000 Units Secured by Reducing Newlywed Couple Quota
Opposition Arises Over Significant Reduction of Newlywed Quota...

Minister of Land, Infrastructure and Transport Noh Hyung-wook is responding to questions from lawmakers at the Land, Infrastructure and Transport Committee plenary meeting held at the National Assembly in Yeouido, Seoul, on the morning of the 13th. [Photo by Yonhap News]

[Asia Economy Reporter Moon Jiwon] The government has set a policy to reduce the number of jeonse rental units for newlyweds and increase jeonse rentals for young people.

On the 13th, the Ministry of Land, Infrastructure and Transport reported a plan to secure 5,000 jeonse rental units near subway stations for the youth at the National Assembly Land, Infrastructure and Transport Committee plenary meeting, in relation to the supplementary budget and changes to the Housing and Urban Fund operation plan.

They further explained that 2,000 units would be secured through changes in the fund operation plan, and 3,000 units would be secured through adjustments within existing projects. They plan to increase the fund by 285 billion KRW to secure 2,000 jeonse rental units for youth, and supply the remaining 3,000 units by reducing the supply of 3,000 jeonse rental units for newlyweds through project adjustments.

In response, opposition party lawmakers pointed out that while securing jeonse rental units for the youth is important, significantly reducing the number of jeonse rental units for newlyweds is inappropriate.

The Ministry of Land, Infrastructure and Transport stated that since demand for newlywed jeonse rentals has been found to be declining, it is acceptable to reallocate these units for youth. In fact, as of the end of June, the supply plan for newlywed jeonse rentals was 14,000 units, but only 5,246 units were actually supplied, achieving a rate of 37.5%. On the other hand, the achievement rate for youth jeonse rentals was 55.3%, higher than the overall average of 41.5%.

Song Seokjun, a member of the People Power Party, said, "Recently, with the rapid rise in jeonse prices, the current scale of jeonse rental support is insufficient for newlyweds to find good homes, which has led to reduced demand," and criticized, "Isn't the plan to increase the execution rate of jeonse rentals by changing the supply target to youth?"

Minister of Land, Infrastructure and Transport Noh Hyungwook said, "Newlyweds seem to prefer higher-quality housing rather than jeonse rentals," and added, "We are preparing many other support measures, such as the 3rd New Town development, for them."

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