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Innovative Growth·Safety·Comfortable daily lives - Our vision is to bulid Korea to be country of hope where all people grow together

Housing

Home Policy Issues Sectoral Policies Housing

Respond to market conditions in a preemptive and flexible manner; rein in speculative demand in overheated areas while managing supply to an appropriate level in contracted areas; ultimately restore the housing market order geared toward real demand

  • (Market stability) Control speculative demand by modifying reconstruction regulations (tightening safety diagnosis of apartments eligible for reconstruction and recapturing excess rebuilding gains, etc.); introducing a debt service ratio (a stricter financial regulation for mortgage loans); and applying heavier capital gains tax to multiple homeowners
  • (Real demand-oriented) Impose stronger punishment on market-disruptive practices such as price rigging or fraudulent transactions (making contracts and then intentionally canceling them, raising asking prices as well as real transaction prices); reduce the transaction reporting period; Strengthen restriction on the resale of pre-sale rights for apartments to which a pre-sale price cap is applied; Modify the subscription system to give non-homeowners more room for being drawn
  • (Contracted areas) Bring housing supply to an appropriate level by managing unsold pre-sale units in provincial areas, adjusting LH's supply of sites for construction, and controlling the start of building public pre-sale houses; promote tenant protection by providing guarantee for the return of rental deposit and expanding the priority of claim for small-sum deposit
  • (Monitoring) Strengthen monitoring of speculation-prone areas or slumped areas to ensure a prompt response to abnormalities and prevent low-income households from being damaged

Secure stable housing for low-income households with a tailored approach to life stages and income levels, mainly expanding public rental housing to ensure long-term residence

  • (Low-income households) Plan to provide 1.04mn units of public housing by 2022, which breaks down to 695,000 units for public rental housing, 200,000 units for public supply private rental housing, and 150,000 units for public pre-sale housing
    • Increase housing benefit with the abolition of a family support obligation rule in October 2018
  • (Newlyweds) Supply 250,000 units of public rental housing and 100,000 units of pre-sale housing with proximity to childcare centers
    • Increase the recipient number and ratio of pre-sale housing for newlyweds in special supply
    • Introduce mortgage or jeonse loans with lower interest rates to reduce the debt servicing burden of newlyweds for home purchase or rental
    • Jeonse is Korea's unique rental system where a tenant pays a large lump-sum deposit in lieu of paying monthly rent. The deposit is returned when the lease ends.
  • (Young adults) Supply 270,000 units of rental housing in various types such as Happy Housing, share houses, SOHO clusters, dormitory-style residence, etc.
    • Operate a housing subscription account that prefers low-income (non-homeowners)
    • Raise the cap for monthly rent loan from W300,000 to W400,000 and lower the minimum age eligible for jeonse loans from 25 to 19
  • (Elderly) Supply 50,000 units of rental housing that connects barrier-free design (no threshold in doorway, height-adjustable sinks, etc.)
    • Install motion sensors for seniors living alone to prevent lonely deaths
    • Support to cover the cost of living by providing pension to seniors with the proceeds from the sale of their houses (rented out to others)