As of the 16th, 1.05 million cumulative subscribers
4.5% preferential interest rate with tax exemption on interest income and income deduction
Available for those with income under 50 million won and who are the only non-homeowners
The Ministry of Land, Infrastructure and Transport announced on the 20th that the number of subscribers to the 'Youth Housing Dream Subscription Savings Account' has surpassed 1 million.
An information leaflet for the 'Youth Housing Dream Subscription Account' is placed at a branch of a commercial bank in Seoul. Photo by Yonhap News
The Youth Housing Dream Subscription Savings Account offers a preferential interest rate of 4.5%, which is 1.7 percentage points higher than the general subscription savings account, along with tax exemption on interest income and income deduction benefits. It was launched on February 21st under the 'Youth Homeownership 1·2·3' program, which supports young people with purchase loans in the 2% range in three life stages if they save for one year.
According to the Ministry of Land, Infrastructure and Transport, as of the 16th, the cumulative number of subscribers since the launch of the subscription savings account reached 1.05 million. This includes 432,000 new young subscribers and 623,000 young people who converted from the existing Youth Preferential Subscription Savings Account to the Youth Housing Dream Subscription Savings Account.
The relaxation of subscription eligibility had a significant impact on enabling more young people to join. Unlike the existing Youth Preferential Subscription Savings Account, which only allowed household heads without housing to subscribe, the Youth Housing Dream Subscription Savings Account allows anyone who is housing-free to subscribe. The income requirement was also raised from 36 million KRW to 50 million KRW, and active-duty soldiers can also subscribe to this account.
Those who win the subscription using this account can also receive the Youth Housing Dream Loan, which provides loans at interest rates in the 2% range for up to 80% of the sale price. To use the Youth Housing Dream Loan, subscribers must maintain the account for more than one year (including conversions) and deposit at least 10 million KRW. Specific details regarding this will be announced by the end of this year.
In addition to the Youth Housing Dream Subscription Savings Account, the Ministry plans to support asset formation and facilitate home acquisition for young people through a 'Youth Housing Support Package' tailored to life stages, including public housing subscriptions, housing finance support, and housing cost assistance. The Youth Housing Support Package includes New:Home public sales targeting unmarried youth aged 19 to 39, special newborn loans offering up to 500 million KRW at low interest rates for homes priced under 900 million KRW, and youth monthly rent support.
Kim Gyu-cheol, Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, said, "We will continue to listen to the voices of young people and actively discover various policy measures to support youth housing."
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