Amid the Hot Subscription Fever... Be Cautious When Using Subscription Savings Accounts

Special Supply for Newlyweds Limited to Only One Lifetime Opportunity, 7-Year Re-Selection Restriction in Daegu and Other Regulated Areas

# Mr. A applied for a newly built apartment in Suseong-gu, Daegu last year through the special supply for newlyweds and won the lottery, swept up by the surrounding atmosphere. He followed the advice of those around him who said he could think about it after winning. However, when it came time to sign the contract, he faced difficulties in securing funds and ultimately gave up the contract. Thinking he could try again later, he planned to apply for another newly built apartment this time after his finances improved, only to be told that the special supply for newlyweds can only be used once and that he would be barred from applying for 10 years due to the re-winning restriction period. Moreover, the subscription savings account he used lost its validity, and he had to open a new one. As a result of blindly applying, the path to owning a home became even more distant.

# Mr. B used a subscription savings account he had prepared for 20 years and won last year but eventually gave up the contract after hearing negative comments from those around him. Ironically, the price of that apartment he gave up on rose sharply. Regretting blindly giving up the contract based on others’ words, losing a savings account that had been maintained for over 20 years, and watching a premium of hundreds of millions of won form, he wished he could turn back time before the contract.

With housing prices rising continuously, the enthusiasm in the subscription market is higher than ever. Among actual demanders, winning the subscription lottery is recognized as the only way to buy a house at a price lower than the market price, leading to a steady increase in subscription account holders. For example, according to the Korea Real Estate Board, as of the end of April, the number of subscribers to the Housing Subscription Savings totaled 26,176,751, an increase of 112,236 from 26,064,515 in the previous month, demonstrating the high interest of demanders in new housing supply once again.

Given this situation, a phenomenon has emerged where young generations with subscription eligibility apply without concrete plans. In fact, many cases have occurred where people who applied without a specific financial plan ended up in trouble after winning. If they give up the subscription due to lack of funds or other reasons, they lose the subscription savings account they have carefully maintained for a long time due to subscription system regulations and are deprived of subscription opportunities for a while.

Under the current subscription system, there is a regulation called the ‘re-winning restriction’ that limits winners from winning again for a certain period. This policy aims to increase subscription opportunities for the homeless and real demanders by restricting winners from winning other apartments for a set period after winning once.

The re-winning restriction period varies by region and housing supply type: 10 years for housing supplied in speculative overheated districts and those subject to the price ceiling system, 7 years for housing supplied in subscription overheated areas, and 5 years for land lease housing and housing supplied under the provincial law within speculative overheated districts. Depending on the situation, one may be unable to apply for up to 10 years.

Also, the subscription savings account loses its validity immediately upon winning and cannot be reused. This means that once a subscription account has won, it cannot be used again. Therefore, if a winner gives up after winning, they cannot use the subscription savings account they have worked on for a long time, and if they want to try again later, they must open a new subscription savings account.

Since the length of subscription savings account membership can earn up to 17 points in the subscription scoring system, this loss means that even after the re-winning restriction is lifted, subscription opportunities will inevitably become more difficult.

Special supply subscriptions also require caution. Winning a special supply subscription is a once-in-a-lifetime opportunity. If one qualifies for special supply systems such as newlyweds, multi-child families, or first-time homebuyers and wins through them, they cannot receive supply through special supply again.

An industry insider said, "As the government increasingly strengthens subscription regulations, it has become more important to carefully consider one’s situation before applying. Prospective applicants preparing for subscriptions should carefully consider their finances and moving plans before making a decision, and winners considering giving up should try to find ways to proceed rather than easily choosing to give up."