Increasing Subscription Savings Account Limit from 100,000 to 250,000 Won for the First Time in 41 Years

Apartment viewed from Yongsan-gu, Seoul on the 5th. Photo by Jinhyung Kang aymsdream@

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The 'monthly subscription deposit limit of 100,000 won for housing subscription savings accounts,' which has been maintained for over 40 years since 1983, will be raised to 250,000 won as early as September, considering the rise in household income. With this change, account holders will be able to fully enjoy the income deduction benefits for housing subscription savings accounts, which have a limit of 3 million won. On the 12th, the Ministry of Land, Infrastructure and Transport announced the '32 follow-up regulatory improvement tasks from the Livelihood Forum.'

Opportunities for citizens to subscribe to housing will also be expanded. The 'Chungyakye-Bugeum,' which was for private housing, and the 'Chungyakjeochuk,' which was for public housing, will be merged into a single 'Housing Subscription Comprehensive Savings Account' that allows subscription to all types of housing. Even after conversion, the previous deposit records of the existing accounts will be recognized. However, the expanded subscription opportunities will only recognize deposit records from new deposits onward.

For public sale housing called 'New Home' sharing type (land lease housing), once the beneficiary fulfills the 5-year residence obligation period, transactions between individuals will be allowed thereafter. Until now, beneficiaries purchased at a low price below 70% of the market price, and subsequent housing disposition was only possible through public repurchase by the Korea Land and Housing Corporation under the condition that 70% of the appraisal price gain, not the actual market price gain, accrued to the corporation.

Additionally, the supply target for the shared residential facility called 'Dormitory-type purchase rental housing' will be expanded from youth to the elderly. Furthermore, local governments will be allowed to allocate special supply quotas to respond to low birth rates and aging in local communities. Special supply accounts for up to 10% of the total sale volume, but if approved by the city or provincial governor, it can exceed 10%.

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