Democratic Party Policy Committee to Announce 3rd Election Policy Pledge on 29th
50,000 Houses in 3rd New Towns and Land Development Agency, 40,000 Houses in Metropolitan and Regional Hub Old Downtowns, 10,000 Houses on Yongsan Korail Site
Introduce Mortgage for Youth and Newlyweds, Lower Loan Interest Rate by 0.2%p and Increase Loan Limit by 100 Million KRW
[Asia Economy reporters Wondara and Jeon Jinyoung] The Democratic Party of Korea has announced a pledge to supply 100,000 housing units to youth and newlywed couples as part of its general election promises. They also plan to implement a dedicated mortgage program to support 2 million households of youth and newlyweds.
The Democratic Party's Policy Committee held a pledge announcement ceremony at the National Assembly on the morning of the 29th, revealing these details. According to the pledge, 50,000 units will be supplied to youth and newlywed couples in the Seoul metropolitan area's 3rd phase new towns and transit-oriented development areas (subway and GTX station zones), 40,000 units in metropolitan and regional hub old downtown areas, and 10,000 units on Korail sites and national/public land including Yongsan.
The Policy Committee explained that they will create "youth and newlywed customized cities linked with youth venture towns and newlywed-specialized complexes in the 3rd phase new towns of the metropolitan area such as Namyangju Wangsuk, Goyang Changneung, Hanam Gyosan, Bucheon Daejang, Incheon Gyeyang, and in land development districts such as Siheung Geomo and Hajung, Gwacheon, Ansan Jangsang, and Yongin Guseong," and "will supply startup support facilities and childcare facilities in these areas."
In metropolitan and hub cities, policies to revitalize local communities such as startup promotion, attracting small and medium enterprises, research and development (R&D) centers, and cultural urban regeneration projects will also be pursued. Using major Korail sites and national/public land including Yongsan in Seoul, 10,000 youth and newlywed housing units linked with Happy Housing and Newlywed Hope Town will be supplied.
The Democratic Party stated, "Looking at the housing status of youth and newlywed couples, there is a high policy demand for 'jeonse and purchase loan financial support,'" and announced a pledge to support 1 million households each of youth and newlywed couples through a dedicated income-type mortgage. This dedicated mortgage has a loan interest rate of 1.3%, which is lower than the general income-type mortgage rate of 1.5%. The loan limit will be expanded from the existing 200 million KRW to 300 million KRW, and the repayment period will be extended from 20 years to 30 years.
The scale of youth monthly rent loans from commercial banks will also be expanded from the existing 1.1 trillion KRW to 2 trillion KRW, the interest rate on youth Didimdol jeonse funds will be lowered, and housing benefits for job seekers and university students living separately from their parents will be expanded.
Cho Jung-sik, chairman of the Democratic Party Policy Committee, said, "Although the Moon Jae-in administration has prepared housing stability measures for youth and newlywed couples, the Democratic Party will present more bold housing policies," adding, "We will reduce the housing cost burden for youth and newlywed couples and increase housing supply." He also emphasized, "In terms of housing supply methods, we will not only resolve residential polarization but also simultaneously satisfy jobs and housing." Lee Hae-chan, leader of the Democratic Party, said, "This is a broad housing welfare policy that not only supports places for youth and newlywed couples to live but also breathes hope and new perspectives on how to live," and added, "We will ensure that youth and newlywed couples can have stable housing lives."
Meanwhile, ahead of the general election, political parties are successively announcing real estate policies. Earlier, the Justice Party announced the 'Real Estate Speculation Eradication Act and Low-Income Housing Stability Act' as its second pledge for the general election, promising to extend tenant protection periods and strengthen property taxes. The Party for Democracy and Peace also proposed a measure to supply 1 million small apartments at 100 million KRW each as its first pledge for the general election.
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