[Practical Finance] 71% of Disqualified Winners Due to 'Entry Errors'... Calculate Subscription Points Conservatively

Even if the score decreases after re-evaluation,
winning is maintained if it remains above the winning cutoff
Carefully consider the criteria for housing period for single and married
Simultaneous couple applications are prohibited for public housing sales

[Asia Economy Reporter Kim Hyemin] According to the Korea Real Estate Board, as of January this year, the number of subscription savings account holders has exceeded 28 million. This means that more than half of South Korea's population is prepared to try applying for housing at least once. However, the reality is that 1 to 2 out of every 10 applicants, despite winning the subscription after much effort, have their winning status canceled due to disqualification. According to the Ministry of Land, Infrastructure and Transport, the average annual disqualification rate of winners over five years from 2017 to 2021 reached 14.9%.

If disqualified, subscription applications are restricted for up to one year. Losing a winning opportunity that was obtained by overcoming competition rates of hundreds to one not only wastes that chance but also disrupts plans to secure a home. To avoid losing such a valuable opportunity due to a momentary mistake, careful verification before applying is necessary. We have summarized what prospective applicants should be cautious about to avoid disqualification.

◆ Calculate subscription points as conservatively as possible = Many cases where winners are disqualified and their winning status invalidated stem from minor input errors. According to data received by Democratic Party lawmaker Yang Kyung-sook from the Korea Real Estate Board, over 70% of disqualification causes in the past five years were due to 'subscription point errors.' Subscription points are calculated by adding the period of being without a home (32 points), number of dependents (35 points), and subscription savings account duration (17 points), totaling a maximum of 84 points. Incorrect entries that lower the score increase the likelihood of disqualification.

However, not all changes in points lead to disqualification. According to Article 58, Paragraph 4, Subparagraph 2 of the Housing Supply Regulations, if the recalculated points meet or exceed the score required to be selected as a winner, the applicant should be considered a winner. In other words, even if the recalculated points are lower, as long as they are above the winning cutoff (minimum score), the winning status is maintained.

If the recalculated points are above the cutoff, there is no issue, but if below, disqualification occurs, so careful input of subscription points is necessary. Experts advise that especially when applying for apartments with high competition rates, points should be calculated as conservatively as possible to reduce the chance of disqualification. Restrictions such as combined spousal income or home ownership status required for special supply applications should also be interpreted as conservatively as possible.

◆ Carefully verify high-scoring factors like no-home period and number of dependents = The no-home period is one of the most confusing factors when calculating subscription points. It is important to recognize that the calculation criteria differ between unmarried and married applicants. For unmarried applicants, starting from age 30, 2 points are added for each year. For married applicants who married before age 30, the no-home period is calculated based on the marriage registration date recorded on the marriage certificate. If married after age 30, the unmarried criteria apply. Of course, both the applicant and spouse must not own a home.

Calculating the number of dependents is another confusing area. Since each dependent is worth 5 points, incorrect calculation can easily lead to disqualification. First, the applicant themselves should not be included in the number of dependents. If the applicant is the head of household, household members can be considered dependents. For example, if the applicant, spouse, and two children live together, the number of dependents is 3. To include parents as dependents, they must have lived at the same address for more than 3 years. Whether they are economically supported is less important than whether they live together. It should also be noted that married children and siblings are not considered dependents even if living together.

◆ Confusing overlapping applications... Different standards for public and private housing = Overlapping applications among household members are a common cause of disqualification. Whether overlapping applications are allowed depends on whether the housing is public or private and the announcement date of winners. First, household members without a home cannot apply simultaneously for apartments with the same winner announcement date. In such cases, the winning status can be invalidated due to disqualification. If the announcement dates differ, applying to multiple places on the same application date is not a problem.

When couples apply together, it is important to check whether the complex they are interested in is public housing or private housing. Public housing refers to housing supplied by entities like the Korea Land and Housing Corporation (LH) on public land. Private housing refers to apartments supplied by private construction companies. To summarize, couples can both apply for the same apartment in private housing but not in public housing. Public housing follows the principle of one house per household. Therefore, if a couple applies simultaneously for public housing with the same winner announcement date, both applications will be invalidated or disqualified.

On the other hand, private housing is supplied on a one-person-one-house basis, so both spouses can apply. However, in speculative overheated zones and subscription overheated zones, if both win, they will be disqualified due to re-winning restrictions. Special supply for private housing is supplied on a one-household-one-house basis, so only one spouse should apply. If both apply together, even if only one wins, disqualification occurs.

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