[2022 Budget] Ministry of Land, Up to 200,000 KRW Monthly for Up to 1 Year for Homeless Youth

60.9 Trillion, a Record High with a 6.8% Increase
38.5 Trillion Invested in Welfare for Housing-Vulnerable Groups

Minister of Land, Infrastructure and Transport Noh Hyung-wook is attending the Cabinet meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 31st. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kangwook Cho] Starting next year, up to 200,000 KRW per month will be provided for up to one year as monthly rent support for young people without housing. Support for rental housing loan funds will be expanded, and projects to improve metropolitan transportation services, including the 수도권광역급행철도 (GTX), will be actively promoted.

The Ministry of Land, Infrastructure and Transport announced on the 31st that it has prepared next year’s budget at a record high of 60.9 trillion KRW to promote these projects. Compared to this year’s budget, it has increased by about 3.8 trillion KRW (6.8%). Next year’s Ministry of Land, Infrastructure and Transport budget accounts for about 10.1% of the government’s total expenditure.

By sector, the increase rate in welfare, including housing and basic living security, is higher (8.5%) than the increase rate of traditional living infrastructure (SOC) budgets such as roads and railways (3.9%). Considering uncertainties and polarization caused by the prolonged COVID-19 pandemic, more than 60% of the budget, 38.5 trillion KRW, will be focused on welfare sectors such as support for housing-vulnerable groups and basic living security.

In particular, to strengthen the housing safety net, the housing benefit budget will be increased, and the eligibility criteria will be expanded from the previous 45% or less of the median income to 46% or less. The standard rent will be fully realized at 100% compared to the minimum guaranteed level. The integrated public, multi-family purchase, and jeonse (long-term deposit lease) rental housing loan funds will be significantly expanded. The integrated public fund will increase from 181.3 billion KRW this year to 1.8231 trillion KRW next year, and multi-family purchase will increase from 6.4089 trillion KRW to 9.156 trillion KRW.

To alleviate housing instability for young people without housing, the ‘Youth Monthly Rent Temporary Support Project,’ which supports up to 200,000 KRW per month for up to 12 months, has been newly included in next year’s budget. This is part of the special youth support measures announced by the government on the 26th, and the number of beneficiaries is estimated to reach 152,000. Separately, the Ministry of Land, Infrastructure and Transport will also support interest-free monthly rent loans of up to 200,000 KRW for youth until 2023.

Additionally, a large budget of 11.3 trillion KRW will be invested to enhance economic vitality through expanded balanced development investment, regional hub cultivation, and transportation network connections. Budgets totaling 787.4 billion KRW, which is over 30 billion KRW more than this year, have been allocated for projects such as the Pyeongtaek?Osong double-track railway, the Southern Inland Railway (Gimcheon?Geoje), the Donghae Line single-track electrification (Pohang?Donghae), and the Southwest Coast tourist road project. The Seoul?Sejong Expressway project (670.6 billion KRW), Honam High-Speed Railway (261.7 billion KRW), and Ulleung Airport (114 billion KRW) construction are also included.

To dramatically improve metropolitan transportation services that have a high impact on citizens’ daily lives, about 1.9 trillion KRW has been allocated for metropolitan and urban railway projects. This is about a 53% increase compared to this year’s budget of 1.2143 trillion KRW. Budgets of 460.9 billion KRW for GTX A (Paju?Dongtan), 80.3 billion KRW for GTX B (Songdo?Maseok), and 103 billion KRW for GTX C (Deokjeong?Suwon) have been set. In addition, 2.2 trillion KRW has been allocated to support the Korean New Deal and innovative industries in preparation for the post-COVID era, and the budget for national land and transportation safety, including industrial site safety enhancement and digital SOC, will increase from 5.7 trillion KRW this year to 6 trillion KRW next year.

Hadongsu, Director of Planning and Coordination at the Ministry of Land, Infrastructure and Transport, said, “The active role of public finance to overcome crises and revitalize the economy is more important than ever. Next year, we will allocate the maximum budget and funds for balanced development, national safety, and housing safety net establishment to inject vitality into the stagnant economy and fully prepare for the future.”