Another Changed Subscription System... Only Stirring Confusion and Conflict

Opened Special Housing Opportunities for Unmarried and Childless Newlyweds, but Complaints from Existing Eligible Applicants Are Inevitable
Limited Supply with Only Redistribution of Beneficiaries... Inherent Limitations

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] As the government once again moves to revise the subscription system under the pretext of addressing blind spots in the subscription process, dissatisfaction among prospective subscribers is growing. Frequent reforms have complicated the subscription system, making it increasingly difficult for people to devise subscription strategies. With only minor adjustments to criteria and targets within a limited supply, concerns are raised that this is not only causing conflicts between generations but also increasing dissatisfaction within generations.

According to industry sources on the 8th, the "Housing Supply Regulations," which encompass the subscription system, have been revised about five times a year under the current government. As real estate measures are announced, revisions to these regulations have become frequent, making the system so complex that even experts find it difficult to understand at once.

It is also hard to discern the policy direction. The system has become a patchwork as it is revised by collecting complaints on a case-by-case basis. For example, in 2017, the government aimed to increase the chances of winning for actual homebuyers without homes by applying only the point system to units under 85㎡ in speculative areas and speculative overheating districts. However, as the point system was criticized for being disadvantageous to the youth, the government changed the system last July to select 30% of the general public housing units by lottery.

The recent decision to supply 30% of the special supply units for first-time homebuyers and newlyweds by lottery also stems from criticism that childless newlywed couples and young people have difficulty winning.

However, as the subscription system frequently changes, more people are complaining about difficulties in understanding it. It is not easy to go through each of the over 300-page resident recruitment notices, and this has led to unnecessary social costs such as producing ineligible applicants. In fact, according to data submitted by the Korea Real Estate Board to Rep. Yang Kyung-sook of the Democratic Party of Korea, there have been about 112,500 cases of cancellations due to ineligibility over the past five years.

Since the distribution method changes without increasing the supply volume, there are criticisms that dissatisfaction among those who do not receive benefits is only intensifying. The recent reform to expand subscription opportunities for unmarried or childless newlywed couples inevitably generates dissatisfaction among low-income newlyweds with children who previously had higher chances of winning. Following the increase in special supply proportions that caused conflicts between the 40-50 age group without homes and the 20-30 age group, it is now fueling conflicts within generations as well.

Kim Deok-rye, Director of Housing Policy at the Korea Research Institute for Human Settlements, said, "The issue is whether a rational distribution can be made to minimize dissatisfaction when allocating limited resources, but if subscription principles disappear, dissatisfaction among neglected groups is inevitable," adding, "The fundamental problem of not increasing supply cannot be solved by changing distribution ratios, so controversies continue in a vicious cycle."

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