It has been found that there are still nearly 300 cases of residents in rental apartments of Korea Land and Housing Corporation (LH) owning high-priced vehicles that exceed the eligibility criteria. LH noted that even if residents own luxury vehicles, it is difficult to terminate contracts mid-term for the sake of housing stability. Contracts are only denied during renewal if residents hold high-priced vehicles, and this year, there have been 17 cases of contract denial for this reason.
The controversy over residents owning luxury vehicles, which goes against the purpose of supplying rental apartments aimed at stabilizing housing for low-income citizens, is a recurring issue each year.
According to data on high-priced vehicle ownership among rental apartment residents submitted to Representative Kim Hee-jung of the People Power Party by LH on the 27th, there were 297 cases of residents owning high-priced vehicles as of the 13th of last month.
The value of the vehicle possessed as a rental housing entry requirement is set at 38.03 million won or less for public rental housing as of this year. For long-term lease, the limit is 37.08 million won. However, vehicles used by persons with disabilities and those used for the welfare of national merit recipients are recognized as exceptions. In the case of low-emission vehicles purchased with support from the national or local governments, the amount exceeding the subsidies provided for the vehicle must not exceed this standard.
Currently, the high-priced vehicles owned by residents of rental housing include many luxury imports such as Porsche, Maserati, Mercedes-Benz, BMW, and Audi. There were instances where vehicles, such as the Porsche Cayenne Turbo (177.71 million won) and the Mercedes-Benz AMG G63 (100.99 million won), had acknowledged values far exceeding the standards.
Rental apartments are dwellings provided for social vulnerable groups, including the lowest income strata, low-income citizens, youth, persons with disabilities, and national merit recipients. LH supplies apartments at prices lower than the surrounding market rates to ensure their housing stability. However, contrary to the intention of stabilizing the housing of vulnerable groups, there are ongoing cases where residents meet asset and income requirements only at the time of entry into rental apartments and then purchase high-priced vehicles. This raises the possibility that those truly in need of housing stability may not be able to enter rental apartments.
In response to such controversies, LH regularly conducts comprehensive investigations into registered vehicles to limit residents' ownership and parking of high-priced vehicles.
Since last year, measures have been put in place to deny contract renewals for those who own high-priced vehicles. However, for residents who entered before January 5 last year, even if the value of their vehicle exceeds the standard, they can renew once. After this system was established, LH reportedly denied 129 contract renewals last year.
This year, there have been 17 cases (as of the 14th of last month) where contract renewals were denied due to owning high-priced vehicles. Residents who own high-priced vehicles and have not yet reached their renewal period can continue to reside in rental apartments until the end of their contract.
Additionally, to address the problem of high-priced vehicle ownership, LH has considered expanding the number of vehicle ownership investigations and taking eviction measures if high-priced vehicles are not disposed of; however, this may infringe on residents' housing rights, making implementation impossible. In its action plan disclosed in response to the issues raised during the 2024 National Assembly inspection, LH stated, "Expanding the number of investigations into high-priced vehicle ownership after entry and eviction measures for non-disposal are not feasible due to concerns about infringing on residents' housing rights."
LH stated that it will continue to strengthen oversight of high-priced vehicles to ensure that rental apartments operate as intended. An LH official noted, "We will strengthen management and oversight regarding residents' ownership of high-priced vehicles."