Yoon Reviews Pledge to Raise Housing Pension Subscription Amount

No Realistic Basis for the 900 Million KRW Limit

Focus on Reducing the Burden on the Elderly

[Asia Economy Reporters Hyunju Lee, Minyoung Kim] Yoon Seok-yeol, the presidential candidate of the People Power Party, will include in his real estate pledge to be announced in January next year a plan to raise the subscription amount for the Housing Pension. Currently, to join the Housing Pension, one must own a house with a publicly announced price of 900 million KRW or less. However, due to the recent sharp rise in housing prices, many retirees who need retirement funds are unable to subscribe to the Housing Pension.

A People Power Party official said on the 19th, "The number of houses exceeding the Housing Pension subscription amount is increasing, and we are discussing including a plan to adjust the standard price in the presidential election pledge," adding, "There is considerable consensus that the standard amount should be raised." The exact amount to raise the current 900 million KRW subscription limit has not yet been decided.

The Housing Pension allows individuals who own a house with a combined publicly announced price of 900 million KRW or less, regardless of whether they own one or multiple houses, to subscribe from the age of 55. Depending on the price of the house they own, they receive a fixed monthly amount like a pension until death. However, due to the rapid increase in real estate prices, the number of houses excluded from the Housing Pension has increased, leading to calls for easing the price criteria. According to data submitted to Kim Eun-hye, a member of the National Assembly’s Land, Infrastructure and Transport Committee from the People Power Party, by the Ministry of Land, Infrastructure and Transport last month, the number of apartments with a publicly announced price exceeding 900 million KRW in Seoul more than doubled from 199,646 units in 2019 to 406,167 units in 2021. In Gyeonggi Province, the number increased about ninefold from 8,835 units to 81,842 units during the same period.

The plan to raise the Housing Pension subscription amount is similar in purpose to Yoon’s recent real estate pledge to reduce the tax burden on the elderly by deferring comprehensive real estate tax payments. Both pledges focus on alleviating the economic burden on the elderly. Yoon is expected to begin full discussions on the subscription amount criteria as soon as he forms his election campaign committee.

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