"Subscription Savings Account, Did Only I Break It?"... Regret Grows Quietly with Rising Apartment Prices

Expert: "End Users Should Be Maintained"

Although the number of subscribers to the housing subscription savings account (Housing Subscription Comprehensive Savings) has been declining for 15 consecutive months, the number of first-priority applicants remains steady. Despite the emergence of arguments claiming the subscription savings account is useless, first-priority applicants have relatively maintained their accounts without wavering.

According to Korea Real Estate Board's Subscription Home, as of the end of last month, the total number of housing subscription savings account holders nationwide was 25,802,550, a decrease of 13,335 from the previous month.

The peak was 27,031,911 in June last year, and the number has continuously declined for 15 consecutive months until last month. During this period, the number of subscribers decreased by 1,229,361.

The balance of the subscription savings accounts also decreased. According to data received by Rep. Hong Gi-won of the Democratic Party from HUG (Housing and Urban Guarantee Corporation), the balance was 90.4251 trillion KRW in 2021 but dropped to 88.4167 trillion KRW as of the end of last month.

Photo by Younghan Heo younghan@

The reason subscription savings accounts are being neglected is mainly attributed to the sharp rise in interest rates and raw material costs, which have caused soaring sale prices, leading prospective applicants to adopt a 'subscription uselessness theory.'

However, first-priority applicants have not been shaken by this theory. Even after peaking at 17.6 million in November 2022 and experiencing a downward trend, the number has remained in the 17 million range. As of last month, there were 17.09 million first-priority applicants.

Those who joined for genuine subscription purposes do not easily cancel their accounts. Experts believe that regardless of the controversy over the effectiveness of the subscription savings account, it is important for actual demanders to maintain their accounts.

There are also benefits for long-term holders of subscription savings accounts. In August, the Ministry of Land, Infrastructure and Transport announced an improvement plan for 'Housing Subscription Comprehensive Savings Benefits,' raising the preferential loan interest rate for long-term holders purchasing funds from a maximum of 0.2 percentage points to 0.5 percentage points.

Previously, subscribers with accounts for more than one year received a 0.1 percentage point preferential loan rate, and those with more than three years received 0.2 percentage points. This has been changed so that those with more than five years receive 0.3 percentage points, more than ten years receive 0.4 percentage points, and more than fifteen years receive 0.5 percentage points.

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