Seoul City to Support 25,000 Newlywed Households This Year... Methods Include "Expansion of Modular and Reconstruction Purchases"

3,200 Rental Purchase Units, 1,404 Reconstruction Purchase Units, 813 Station-Area Youth Housing Units, and Support for 10,500 Newlywed Couple Lease Deposits "Application Surge... Considering Additional Support if Early Target Achievement"

Seoul Mayor Park Won-soon is holding a New Year's press conference for foreign correspondents based in Seoul at the Seoul Foreign Correspondents' Club lounge in the Press Center, Jung-gu, Seoul, on the 21st. Mayor Park delivered a keynote speech focusing on Seoul's 2020 agenda of a "Fair Starting Line" and the global issues of inequality and unfairness. Photo by Kim Hyun-min kimhyun81@

Park Won-soon, Mayor of Seoul (file photo)

[Asia Economy Reporter Kim Yuri] "The biggest burden for newlyweds is the 'housing issue.' This year, the Seoul Metropolitan Government will support 25,000 newlywed couples."

On the 22nd, Ryu Hoon, Director of the Housing and Architecture Headquarters of Seoul City, stated at the '2020 Public Service Report' held at Seoul City Hall, "This year, we will provide housing support for newlywed couples for 25,000 households, increasing by 8,000 households from the current 17,000 households through expanded housing supply and financial support." This goal is based on the newlywed housing expansion plan announced by Seoul City last October. The plan for the additional 8,000 households this year consists of 2,445 households supplied through housing provision and 5,500 households supported through financial aid annually.

In terms of direct housing supply, the policy is to expand supply of ▲ newlywed purchase rental housing ▲ reconstruction purchase housing ▲ and station-area newlywed housing. Newlywed purchase rental housing will supply 3,200 households this year with an additional 1,800 households annually. The original goal of supplying 4,200 households over three years has been expanded to 9,600 households over three years. Director Ryu said, "We plan to increase purchase announcements from three times a year to seven times a year and relax purchase criteria by allowing modular housing purchases." He added, "The Seoul Housing and Communities Corporation (SH Corporation) will involve architects from Cheongshinho to conduct six-stage quality inspections and work on providing public spaces such as community facilities."

For station-area youth housing for newlyweds, 813 households will be occupied this year. The supply target has increased from 7,353 households over three years to 8,253 households. Director Ryu explained, "Through the innovative plan for station-area youth housing announced last November, we diversified project types, aiming to reduce rents and expand public rental housing."

This year, 1,404 households have also been secured from reconstruction supply within Seoul. This target has been expanded from 3,106 households over three years to 4,140 households. Director Ryu said, "We adjusted the schedule to secure increased supply and will prioritize the additional units for newlywed couples."

Among financial support methods, the representative newlywed rental deposit support will assist 10,500 households this year. Over three years, support will be provided to 31,500 households, more than doubling the original target of 15,000 households. Since the 1st of this month, the combined annual income limit for couples has been relaxed from 80 million KRW to 97 million KRW, and interest support has been expanded from a maximum of 1.2% per year to 3.0%. Support for couples within five years of marriage has been extended to within seven years, and the support period has been extended from a maximum of eight years to ten years. Applications can be made not only at Kookmin Bank but also at Hana Bank and Shinhan Bank (Shinhan Bank starting February 28).

Applications for newlywed rental deposit support have increased about 5.8 times compared to the previous year within three weeks of the expanded implementation. Director Ryu said, "Applications increased sharply from an average of 27 cases per day last year to 157 cases this year," adding, "We expect to exceed the 2020 target of 10,500 households within three to four months and will strive to provide additional support if necessary."

The city explained that the 'Seoul Housing Portal,' which opened at the end of last year to provide comprehensive customized housing information, is also receiving great response with about 3,000 daily visitors. At this portal, users can not only receive housing information but also apply for financial support services all at once.

Meanwhile, in the day's service report, Seoul City presented four major priority projects to realize a 'fair starting line,' including not only newlywed housing support but also ▲ innovation startup support ▲ youth start support ▲ and installation of elementary school care centers. The city plans to collect opinions through discussions among citizens, experts, and related officials and reflect them in policies and projects. Mayor Park Won-soon said, "As I stated in the New Year's address, in the context of prolonged low growth, low birthrate, and aging trends, a major transformation to revive the economy and people's livelihoods must start from a fair starting line," adding, "We will focus on promoting the projects announced today."