Priority No.1 if undergoing infertility treatment? ... 47 Years of Cheongyak Savings Account Evolution [News Seolcham]

(38) 47 Years of Subscription System Evolving with the Times
Changed from Lottery to Point System Since 2007
Monthly Payment Recognition Amount Increasing from 100,000 to 250,000 Starting This November

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As apartment sale prices rise and subscription competition rates soar, the government has begun revising the system, including raising the recognized monthly payment amount for subscription savings accounts. The subscription system, established in 1977 to prevent speculation and supply apartments to those without homes, has evolved according to changes in the times and economic trends.

Currently, the subscription savings account system provides greater benefits to newlywed households and households with children. In March, overlapping subscriptions by couples were allowed, increasing the chances of winning, and the subscription periods of spouses can now be combined. A special supply for newborns (children under 2 years old) was introduced to prioritize housing supply to households with newborns, and the criteria for special supply for multiple children were lowered from three children to two children.

However, in the 1970s, when population control policies were in place, there were no benefits for multiple-child households. Instead, priority supply rights were granted to those who underwent permanent sterilization procedures, which led to a significant increase in sterilization cases. The number of sterilization procedures increased from about 80,000 at the end of 1976 to about 140,000 by the end of August 1977. At that time, first-priority qualifications were given in the order of ▲overseas workers who had undergone permanent sterilization ▲those who had undergone permanent sterilization ▲overseas workers. The preferential treatment for those who underwent permanent sterilization disappeared with the revision of housing supply regulations in 1997, when population control policies were abandoned.

The preference for multiple-child households emerged in 2006, when the low birthrate issue became prominent. The special supply for multiple children was first implemented during the sale of apartments in Pangyo New Town, Seongnam City, Gyeonggi Province. At that time, the government added a provision through the revision of housing supply regulations stating that "special supply can be made once within 3% of the construction volume to a household head without a home who has three or more minor children." From September 2007, when the current point system was introduced, scores were assigned differently based on factors such as ▲period without a home ▲subscription savings account subscription period, and the number of dependents.

The subscription system has also repeatedly tightened and relaxed regulations depending on the real estate market trends. After the IMF crisis in the late 1990s, when the economy stagnated, the subscription system showed signs of deregulation. Previous winners and owners of two homes were included in the first priority, and restrictions on subscription savings accounts, pre-sale rights, and housing resale were abolished. Later, as the economy recovered in the early 2000s, the government tightened regulations again. In 2002, the designation system for speculative overheated districts was introduced, and the number of apartments preferentially supplied to long-term home-less household heads was increased. Measures such as restrictions on resale of pre-sale rights were also reinstated.

In the past, there was also a system for those who failed to win subscriptions. In September 1978, the government established the "zero priority" system, which gave priority winning rights to those who failed six or more times. Although the intention was good, being in zero priority practically guaranteed apartment supply, so it was often abused for speculation. As a result, the zero priority system was abolished in 1983.

Meanwhile, the subscription system, which has been running for 47 years, was reformed again this year. This appears to be an effort to quell the growing "subscription uselessness theory" spreading due to high competition rates, point cutoffs, and high sale prices. According to the Korea Real Estate Board's Subscription Home as of the end of August, the number of subscription savings accounts was 25,457,228, a decrease of 358,657 from 25,815,885 at the end of August last year.

Starting November 1, the recognized monthly payment amount for subscription savings accounts will be raised from the current 100,000 won to 250,000 won, and the income deduction limit for subscription savings accounts will be increased from 2.4 million won to 3 million won. The interest rate on subscription savings accounts will also rise. The government raised the interest rate on subscription savings accounts from the previous 2.0?2.8% to 2.3?3.1% as of the 23rd, an increase of 0.3 percentage points. However, payments made before the interest rate increase will apply the previous rates. The income deduction limit for subscription savings accounts will also be raised from 2.4 million won to 3 million won starting in November.