[Beginner's Guide] 'Alssongdalsong' First-Time Special Supply, Fully Explained

Not only applicants but all household members must have no history of home purchase

Must have married or unmarried children... Income tax payment for over 5 years is also required
Monthly income up to 8.09 million KRW for a family of four allowed

[Asia Economy Reporter Lee Chun-hee] When I became a real estate reporter, I often received unexpected KakaoTalk messages from friends. "How do I apply for a housing subscription?" "What is first priority?" For the 2030 'Burin-i (Real Estate + Beginner)' who only have subscription accounts created by their parents when they were young, I am trying to create a guide.

There is good news for 2030 Burin-i who were despairing over high subscription scores. The special supply expansion measure announced by the government through the July 10 real estate policy has been officially implemented since the 29th of last month.

Accordingly, from that day, complexes issuing tenant recruitment announcements must supply 7-15% of houses under 85㎡ in private housing as special supply for first-time homebuyers. With the introduction of first-time special supply not only in public housing, where supply was relatively limited, but also in private housing, many subscription applicants are focusing their attention.

To receive the first-time special supply, applicants must meet the following conditions: ▲ fulfill the first-time home purchase requirement ▲ be a member of a non-homeowner household who qualifies as first priority under the 'Housing Supply Regulations' ▲ be married or have unmarried children ▲ be a worker or self-employed person who has paid income tax for more than 5 years (including those obligated to pay income tax but with no payable amount due to deductions, tax credits, or exemptions) ▲ have a monthly average income of the household at or below 130% of the previous year's average monthly income of urban workers per household. Additionally, depending on the complex, asset criteria such as having real estate assets (land and buildings combined) valued at 215.5 million KRW or less as of this year, and if owning a car, the value must be 27.64 million KRW or less, may be applied.

Today, we will carefully examine these criteria to understand in which cases it is actually possible to apply for the first-time special supply in private housing and when it is not.

The Most Basic 'First-Time Home Purchase'... Pay Attention to Small and Low-Priced Housing Criteria

Overview of Special Supply for First-Time Homebuyers in Private Housing (Provided by the Ministry of Land, Infrastructure and Transport)

The first and most fundamental requirement is the 'first-time home purchase condition as of the tenant recruitment announcement date.'

The first-time condition must be met not only by the head of the household but by all household members, and the housing criteria include not only houses but also pre-sale rights. Furthermore, regardless of the reason?purchase, inheritance, gift, or new construction?if the household has ever owned a house (including pre-sale rights), they cannot benefit from the first-time special supply. For example, if a spouse inherited a house before marriage and disposed of it just before marriage, they are not eligible for the special supply.

However, there are exceptions. The 'Housing Supply Regulations' recognize some cases as non-homeowners even if they currently own or have owned a house. For detached houses, if more than 20 years have passed since the usage approval or if the exclusive area is 85㎡ or less, they are recognized as non-homeowners. Also, if the house or pre-sale right is 20㎡ or less, it is considered non-homeownership. If the applicant or their spouse's direct ascendants own a house or pre-sale right and are over 60 years old, they are also recognized as non-homeowners. These criteria apply not only to the first-time special supply but also to other supply types.

However, the recognition criteria for non-homeownership differ between the general supply method of private housing and the first-time special supply. This is the case for small and low-priced housing. Currently, in the general supply, if one owns only one small and low-priced house under 60㎡ with a publicly announced price of 130 million KRW or less in the metropolitan area, they are recognized as non-homeowners. But in the first-time special supply, unless the house is 20㎡ or less, it is considered ownership. Therefore, it is necessary to clearly understand the status of the house you own.

Be Careful of Different Deposit Amount Criteria by Region

Deposit Criteria for Private Housing Subscription (Provided by the Ministry of Land, Infrastructure and Transport)

The second condition is being a member of a non-homeowner household who qualifies as 'first priority' under the housing supply regulations.

First, in speculative overheated districts or subscription overheated areas, applicants must have been subscribed to the housing subscription savings for more than 2 years and have deposited an amount equal to or greater than the separately set 'deposit standard amount' in the account. For special supply houses under 85㎡, the standard amounts are 3 million KRW for Seoul and Busan, 2.5 million KRW for other metropolitan cities, and 2 million KRW for other regions. Additionally, the applicant must be the head of the household, and no household member should have won another house in the past 5 years.

If the area is not a speculative overheated district or subscription overheated area, in the metropolitan area, the subscription account must have been held for at least 1 year (up to 2 years at the discretion of the city or provincial governor), and in non-metropolitan areas, at least 6 months (up to 1 year at the discretion of the city or provincial governor).

Only Those Married or with Unmarried Children Are Eligible... Must Have Paid Income Tax for Over 5 Years

Archive photo / Photo by Mun Honam munonam@

The third condition is 'being married or having unmarried children as of the tenant recruitment announcement date.' Even if the couple is currently married but registered separately due to circumstances, there is no need to worry. If the marriage is proven by a family relation certificate or marriage certificate, application for the first-time special supply is possible.

On the other hand, if the children are not married due to divorce or other reasons, and are separated in the resident registration, making them unmarried and childless on the resident registration, application is not possible. Regarding the definition of 'unmarried children,' since they must be 'unmarried,' if there are only divorced children, application is not possible. Also, if all children are over 18 years old, a detailed marriage certificate must be submitted to recognize unmarried children.

The fourth condition relates to income. Applicants must be workers or self-employed persons who have paid income tax for more than 5 years as of the tenant recruitment announcement date. This includes those obligated to pay income tax but with no payable amount due to deductions, tax credits, or exemptions.

However, even if recently unemployed and not currently a worker or self-employed, if income tax was paid within one year from the tenant recruitment announcement date, application for the first-time special supply is possible. Special employment workers (SEWs) such as insurance planners and door-to-door salespersons who are not self-employed can also apply if they have paid income tax within one year from the announcement date and have paid for more than 5 years.

The '5 years' criterion does not require continuous payment for the recent 5 years; if income tax has been paid 5 or more times based on the number of years, the qualification is recognized. Even if employed for less than 12 months and paid income tax, it counts as one year of payment.

Proof of income tax payment can be provided through documents issued by the tax office such as ▲ income amount certificate ▲ tax payment certificate ▲ daily worker income amount certificate, or documents issued by the workplace such as withholding tax receipts for earned income (or business income), or daily worker income payment statements (withholding tax receipts) issued by both workplace and tax office.

Note that if only the spouse or household members, not the applicant who is the head of the household, have income tax payment records, the qualification is not recognized. Also, if income tax was paid only on interest income or dividend income without earned or business income, application is not possible.

Opportunity for Households with Monthly Income up to 8.09 Million KRW for 4-Person Families... Can Reapply in General Supply if Special Supply Fails

Finally, the applicant's household monthly average income must be at or below 130% of the previous year's average monthly income of urban workers per household.

For the first-time special supply, the income standard is 100% of the previous year's (2019) urban worker monthly average income for public housing and 130% for private housing. The 130% corresponds to 7.22 million KRW for households of 3 or fewer and 8.09 million KRW for 4-person households.

For newlyweds without children or 2-person households, the '3 or fewer persons' income standard applies rather than the 2-person standard, which is somewhat advantageous.

When calculating the monthly average income, the incomes of the household head and adult household members registered in the resident registration are summed. If income cannot be determined due to disappearance or separation of household members, the deletion from the resident registration is confirmed to exclude income calculation. However, if only the spouse is registered separately, the income of the spouse and the spouse's direct ascendants and descendants listed on the spouse's resident registration are included in the income calculation.

The biggest advantage of the special supply is that even if you fail, you can try again in the general supply. The first-time special supply can also be applied for simultaneously with the general supply. However, only one special supply category such as newlyweds, first-time buyers, or multi-child households can be applied for. If multiple special supply applications are found, all applications will be invalidated, so caution is required.

Also, the first-time special supply can only be won once, even if not the first time in life. If the applicant or any household member has won through other special supply categories, the first-time special supply is not possible.