Reasons Not to Discard Your New Year's Housing Subscription Account [Practical Financial Planning]

Maximum 3 Points Combined for Spouse Enrollment Period
Expansion of Income Deduction Scope

The number of nationwide subscription savings account holders for housing applications has decreased for 17 consecutive months. As of the end of last month, the number of nationwide subscription savings accounts (Housing Subscription Comprehensive Savings) stood at 25,703,990, down by 46,601 from 25,751,691 at the end of October. This decline is due to growing concerns over a second drop in housing prices amid the new normal of high interest rates, as well as demanders who could not afford soaring sale prices joining the wave of subscription account cancellations. As competition for housing applications loosens and opportunities to purchase new homes without subscription accounts increase, the popularity of subscription savings accounts is gradually fading.

Experts advise keeping in mind the housing price recovery period. If competition for housing applications intensifies again, the subscription period may become an important variable, especially under the point-based system. The government will also expand benefits related to subscription savings accounts starting next year, including the scope of income deductions and the number of applications allowed for newlyweds. For those at a crossroads about whether to cancel their subscription accounts, we have reviewed the policy changes coming next year.

Income Deduction Limit for Housing Subscription Savings Payment Raised from 2.4 Million KRW to 3 Million KRW Annually

Starting next year, the income deduction limit for payments into housing subscription savings accounts will be increased to 3 million KRW per year. Previously, the income deduction limit was 2.4 million KRW annually. As the number of subscription account holders continued to decline, the government strengthened the benefits for account holders. However, since this requires an amendment to the Restriction of Special Taxation Act, the expanded income deduction limit is expected to apply to payments made from January 1 of next year, once the law is passed.

Special Supply for Newlyweds: From One Joint Application per Couple to One Application Each

The number of housing subscription applications allowed for newlyweds will increase from one joint application per couple to one application per spouse (a total of two applications). Even for apartment applications where winners are announced on the same date, spouses can apply individually using their own subscription accounts. If both are selected, the first application submitted will be recognized as the winning one. This means they can utilize two chances to apply. For example, a couple planning to marry while expecting a child can have one spouse apply under the newborn special supply and the other under the newlywed special supply. This system requires an amendment to the “Regulations on Housing Supply” and is likely to be implemented faster than other systems, with implementation expected by March next year at the latest.

Up to 3 Points of Subscription Period Score from Spouse’s Account Can Be Added

From March 25 next year, in the point-based system for general supply of private housing, 50% of the spouse’s subscription savings account holding period will be recognized when calculating the subscription period score. The maximum additional points through this will be 3 points. However, the maximum combined subscription period score remains 17 points as it is currently. For example, if the applicant has held a subscription account for 5 years (7 points) and the spouse for 4 years (6 points), half of the spouse’s holding period, i.e., 2 years (3 points), can be added to the applicant’s score, resulting in a total of 10 points.

To have the spouse’s subscription period recognized, the applicant must obtain a confirmation of the spouse’s subscription rank as of the recruitment announcement date, then enter the spouse’s score on the Subscription Home website (the same applies for in-person bank submissions). After winning, the confirmation must be submitted to the project owner.

Newborn Special Supply System Established

As a measure to overcome low birth rates, the government has also established a “Newborn Special Supply” for households with newborns. Previously, housing policies encouraging childbirth indirectly supported married households, but now, regardless of marital status, households can purchase new homes. Additionally, about 70,000 public and private housing units will be supplied annually.

In particular, for public sales (30,000 units annually), special supply eligibility is granted to households that have been pregnant or given birth within two years as of the recruitment announcement date, regardless of marital status. For private sales (10,000 units annually), 20% of the lifetime first-time buyer and newlywed special supply units will be preferentially allocated to households with newborns.

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