[Real Estate AtoZ] Why Is It Enough to Deposit Only 6 Million Won in a Subscription Savings Account?

[Asia Economy Reporter Ryu Tae-min] Recently, as demand for the subscription market has decreased, more people are canceling their subscription savings accounts. Although they have paid hundreds of thousands to millions of won over several years to achieve 'owning a home,' the perception is that the chances of winning a subscription are low, and even if they do win, the benefits are not as significant as before.

According to the Korea Real Estate Board's Subscription Home, the number of subscription savings account holders in December last year was 26,381,295, down by 231,522 from the previous month (26,612,817). This is the largest decrease since the survey began in 2010. The number of subscription savings account holders decreased by more than 200,000 for two consecutive months starting November last year, resulting in a reduction of about 400,000 compared to the previous year.

With exactly '6 million won,' you can aim for public special supply and private supply.

The 'subscription savings account' refers to the 'Comprehensive Housing Subscription Savings,' which is necessary to qualify for applying for public and private housing subscriptions. Generally, the more you pay and the more times you pay, the better it is considered, so people tend to pour as much money as possible, which can later become a burden to maintain the subscription savings account. Therefore, if you want to meet the qualification requirements for the necessary subscription types with the minimum amount, it is best to pay only up to 6 million won.

First, in the case of public supply, a payment of 6 million won meets all the qualification requirements for special supply types. Special supply accounts for 80% of the total units and includes categories such as first-time homebuyers, elderly parents support, multiple children, and newlyweds. Most of these can apply if they meet the minimum subscription savings account duration and payment frequency, and winners are selected based on income, number of children, and other criteria. In other words, how long and how much money you have paid into the subscription savings account is not a factor that increases the chance of winning. Among these, the first-time homebuyer category requires a subscription savings payment exceeding 6 million won to apply, so only the qualification for this category needs to be met.

For private supply, the deposit amount requirement for the subscription savings account varies by region and area. For example, for exclusive areas of 85㎡ or less under the 100% point system, the required deposit is 3 million won in Seoul and Busan, 2.5 million won in other metropolitan cities, and 2 million won in areas excluding special and metropolitan cities. For areas exceeding 85㎡, a 50% point system and 50% lottery system apply. Among these, for large units up to 102㎡, the required deposit is 6 million won in Seoul and Busan, 4 million won in other metropolitan cities, and 3 million won in areas excluding special and metropolitan cities. Therefore, if you have paid 6 million won, you can apply for a large apartment of 102㎡ in Seoul.

If aiming for general supply or large-scale private complexes, 'the more, the better' is best

There are exceptions. Prospective applicants aiming for ultra-large apartments exceeding 102㎡ in private supply need to pay more than 6 million won. For complexes up to 135㎡, the required deposit is 10 million won in Seoul and Busan, 7 million won in other metropolitan cities, and 4 million won in areas excluding special and metropolitan cities. For all larger areas combined, the required deposit is 15 million won in Seoul and Busan, 10 million won in other metropolitan cities, and 5 million won in areas excluding special and metropolitan cities.

Also, in public supply, general supply (not special supply) benefits from 'the more, the better.' In general supply, points are determined based on the payment period and amount. Therefore, prospective applicants aiming for general supply will benefit from consistently paying the maximum recognized amount of 100,000 won per month over a long period.

However, for typical young people, the chance of winning special supply is higher than general supply because their subscription savings account payment period and frequency are relatively shorter than those of middle-aged and older people. Additionally, once money is paid into the subscription savings account, it cannot be withdrawn unless the account is used for subscription or canceled. Therefore, if you do not want a lump sum to be tied up in the subscription savings account, it may be advantageous to adjust the payment amount according to the type of subscription you plan to apply for in the future.