Since the start of this year, the number of subscribers to housing subscription savings accounts has fallen by more than 130,000. That is because the odds of winning are low, and even if selected, only those with ample cash can sign contracts due to loan regulations and high presale prices. In particular, as the idea that housing subscription accounts are "useless" spreads among single young adults, more people are reportedly closing their accounts. Experts said the subscription system should be overhauled across the board to match the rise in one-person households.
According to the Korea Real Estate Board (REB) Subscription Home on the 13th, as of the end of March, the number of subscribers to housing subscription accounts (comprehensive housing subscription savings, subscription savings, subscription installment savings, subscription time deposits) stood at 26,051,929. Compared with December last year (26,184,107), 132,178 people closed their housing subscription accounts this year alone. After the presale price cap system was introduced in 2020, the number of subscribers increased, reaching 28.5 million in 2022, but it has dropped by more than 2 million in four years.
In particular, the subscription market in Seoul's Gangnam area is seen as having effectively turned into "a league for those with perfect scores and the cash-rich." At Acro de Seocho in Seocho District, Seoul, which took subscriptions in April, the winning score for one of the two 59㎡ type C units supplied through the points system was a perfect 84. That score requires a period without dwellings of 15 years or more (32 points), a housing subscription account held for 15 years or more (17 points), and six or more dependents excluding the applicant (35 points). In effect, it means a seven-person household would have to live together for more than 15 years without a dwelling to win.
The problem comes after winning. The highest presale price for the 59㎡ type C was 1.79 billion won (about 78 million won per 3.3㎡). Although the presale price cap applied, making it more than 1.7 billion won cheaper than market prices, even winners would need more than 1 billion won in cash to sign a contract.
A 34-year-old office worker surnamed Jeong living in Anyang, Gyeonggi Province, said, "I have diligently deposited money into my housing subscription account every month for over 15 years, but I failed to win in all five attempts, losing out to newlyweds or those with elderly parents as dependents," and added, "A lump sum is tied up, there is almost no interest, and the odds seem small, so I am considering closing it." Another office worker, a 37-year-old surnamed Seo, said, "As revenue from investments such as stocks has recently increased, many people around me are closing their housing subscription accounts."
Experts said the subscription system fails to reflect the reality of the sharp increase in one-person households. The current points system favors the number of dependents and marital status, structurally disadvantaging single young adults. Since deposits in housing subscription accounts are used as resources for the housing & urban fund and go toward low-interest loans for low-income people without dwellings, there are concerns that continued subscriber declines could weaken the foundation of policy finance.
Some also argue that rewards for long-term subscribers to housing subscription accounts should be strengthened. Under the current system, the maximum score for subscription duration is 17 points, and no additional points are given beyond 15 years. Park Ji-min, head of Wol-yong Subscription Research Institute, said, "If we remove the cap on maximum points based on the length of account subscription so that those who have held accounts longer can receive higher scores, we can prevent cancellations."
There are also calls to revise the points-centered structure. The argument is to simplify the system in private presales as in public presales so that the greater the total amount deposited, the more advantageous it is, and to adjust the share and benefits of special supply. Currently, for public presales of exclusive areas over 40㎡, winners are selected in order of the largest recognized deposit aggregates. However, monthly deposits exceeding 250,000 won are not recognized.
Kim In-man, head of a think tank, said, "Private presales also need system changes so that benefits go to those who have paid in faithfully for a long time," adding, "Newlyweds and multi-child households receive double benefits through both special supply and points for general supply, and it is time to discuss adjustments for fairness with one-person households."