The government decided to supply about 30% of public-supported private rental housing to households with infants under age 2. The policy aims to ease the concerns of newlyweds who avoid having children due to housing problems.
According to the Ministry of Land, Infrastructure and Transport (MOLIT) on the 14th, the Enforcement Rule of the Special Act on Private Rental Housing, which the ministry had preannounced in Nov. 2024, completed a review by the Regulatory Reform Commitee on the 5th and moved to the Ministry of Government Legislation for a final review with the original draft intact. The Ministry of Land, Infrastructure and Transport (MOLIT) plans to promulgate and implement the rule immediately after the Ministry of Government Legislation completes its review.
The revised enforcement rule changes the supply rules for public-supported private rental housing so that 29% of the total is supplied to newborn households that give birth to and raise infants under age 2. Newborn households are added as special-supply recipients, and the supply ratio is adjusted so that part of the special supply and general supply is given as priority supply.
Public-supported private rental housing is a corporate rental housing program that began in 2015 under the Park Geun-hye administration under the name "New Stay," with the goal of supplying high-quality rental housing to the middle class. In 2017, under the Moon Jae-in administration, the name was changed to public-supported private rental, and initial rents were capped at 95% of market rates. Public-interest conditions were strengthened, such as prioritizing supply to the houseless, and the mandatory rental period was extended from the previous 8 years to at least 10 years. The Seoul city government operates part of its Youth Safe Housing as public-supported private rental housing. Hyosung Harrington Tower in Seogyo-dong, Mapo-gu, Seoul, is a representative supply complex.
According to the Korea Housing & Urban Guarantee Corporation (HUG), as of the end of March in the first quarter of 2025, the cumulative supply amounts to 78,163 households. A government official said, "The cause of the low birthrate trend is the failure to secure housing stability, so this is a policy to address that."
By supply type, 5% for special supply, provided at 75% of market rates, will be allocated to newborn households. In addition, 30% of general supply (80% of the total), provided at 95% of market rates, will be assigned to newborn households as priority supply. Combining special supply and priority supply, 29% of total supply will go to newborn households.
Lee Eun-hyung, a research fellow at the Korea Institute of Construction Policy Studies, said, "With housing stability deteriorating due to the rapid rise in Seoul home prices, more couples are choosing not to have children, so the government's effort to support newborn households by changing the supply rules for rental housing is a very positive step," adding, "However, along with housing stability support, policy support to improve childcare services for dual-income couples must also be strengthened."