[8.16 Supply Measures] Eviction of 'Parasite' Semi-basement Homes... Expansion of Purchase Agreements and Jeonse Rentals

Annual Supply of 10,000 Public Rental Housing Units
Support for Relocation from Disaster-Prone Housing

Last week, due to heavy rain in the Seoul metropolitan area, a semi-basement apartment in a villa near Gwanak-gu, Seoul, was flooded, resulting in a tragic accident involving a family. In response, the government announced measures regarding 'semi-basement housing' on the 16th.
[Image source=Yonhap News]

[Asia Economy Reporter Cha Wanyong] The government has announced measures to address the issue of 'banjiha housing' where fatal accidents occurred due to record-breaking heavy rains recently in the Seoul metropolitan area.

On the 16th, the Ministry of Land, Infrastructure and Transport announced the 'Plan to Realize National Housing Stability,' stating that it will promote the expansion of support for vulnerable urban residents by increasing the volume of newly constructed urban purchase agreements and expanding jeonse rental housing.

First, the supply of public rental housing for residents living in abnormal dwellings will be increased to more than 10,000 units annually (6,000 units last year), along with deposit support. In particular, relocation support will be expanded, including priority supply of public rental housing for residents of disaster-prone housing.

The newly constructed urban purchase agreements to support vulnerable urban residents will also be significantly increased. While only 39,000 units were contracted over the past five years, the plan is to increase this to 150,000 units over the next five years.

Considering the limitations of meeting demand solely through public supply, a new interest-free loan program for jeonse deposits will be introduced for those wishing to relocate to private rental housing. It is expected that more than 3,000 households annually will benefit from this.

Additionally, the Ministry of Land, Infrastructure and Transport will strengthen the maintenance of risk areas and housing support. This includes easing the designation requirements for maintenance zones in disaster-vulnerable housing clusters, increasing floor area ratios, and supporting the installation of disaster prevention facilities to improve conditions for maintenance projects.

Meanwhile, the Ministry identified that there are 327,000 vulnerable households living in underground (banjiha) housing nationwide, of which 201,000 households (61.4%) are located in Seoul. It was also found that 20% (41,000 units) of banjiha households are situated in autonomous districts located in flood risk areas.