Primary Residence Single-Homeowners to See Average Regional Health Insurance Premium Reduction of 22,000 KRW Starting September

Deduction of Housing Loan and Jeonse Loan When Calculating Health Insurance Premiums

Starting from September, when calculating insurance premiums for regional subscribers of the National Health Insurance, debts borrowed to purchase or rent a house for actual residence by non-homeowners (jeon-wolse tenants) or single-homeowners (owners) will be excluded from the premium assessment. It is expected that the health insurance premiums for 740,000 regional subscriber households will decrease by an average of 22,000 KRW per month.

The Ministry of Health and Welfare announced that the partial amendment ordinance of the "National Health Insurance Act Enforcement Decree," which includes this housing finance debt deduction system, was approved at the Cabinet meeting on the 28th.

The housing finance debt deduction applies only to single-homeowner households or single non-homeowner households. The houses eligible for deduction are owner-occupied homes with a publicly announced price of 500 million KRW (property tax base 300 million KRW), market value between 700 million and 800 million KRW, or jeon-wolse rentals with a deposit of 500 million KRW or less. In the case of rental, the person must be actually residing in the property. Even if a single-homeowner household rents and lives in another person's house, they can receive deductions for the house they own, but loans related to the rental deposit cannot be deducted.

For owners, 60% of the loan amount is multiplied and for renters, 30% is multiplied to calculate the amount deducted from the health insurance premium property tax base. Owner households can receive deductions up to a tax base of 50 million KRW (equivalent to a loan principal of about 83 million KRW), and renter households can receive deductions up to 150 million KRW within the deposit (loan principal of 500 million KRW).

Loans are limited to housing-related loans obtained from financial institutions such as mortgage loans, Bogeumjari loans, jeonse deposit loans, and jeonse deposit secured loans. Also, the loan must have been executed within three months before or after the ownership acquisition date or the move-in date/registration date on the lease contract certificate. The government plans to accept applications for housing finance debt deductions starting from the 1st of next month, conduct reviews, and reflect the deductions in the insurance premiums from September.

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