The government will significantly expand eligibility for youth monthly rent support from at or below 60% of the median income to at or below 100%. To stabilize housing, it decided to include young people who were excluded from rent support due to income thresholds. For low-income youth, the support period for monthly rent will also double, from the current 24 months to 48 months. It will also newly introduce a universal-type public rental housing program for youth that provides up to 240 million won so they can live near transit hubs and similar areas.
On the 28th, the government announced a joint interagency strategy titled "Comprehensive investment plan by youth growth stage." The Ministry of Land, Infrastructure and Transport included measures to build a housing ladder for young people, given unstable youth housing due to high rent deposits relative to income and risks of jeonse fraud.
The Ministry of Land, Infrastructure and Transport (MOLIT) decided to expand youth monthly rent support to reduce housing costs for young people whose rent burden is heavy relative to income. The income threshold for rent support, currently at or below 60% of the median income, will be raised to at or below 100% starting next year. Accordingly, from next year, youth with monthly income of up to 2.73 million won will be eligible for rent support.
The support period for low-income youth will also be extended. For youth at or below the near-poverty bracket, the monthly rent support period will be doubled from the current maximum of 24 months to 48 months.
The monthly rent tax credit rate will also be 17% for youth without homes whose total annual salary is 80 million won or less. This is 2 percentage points higher than the general monthly rent tax credit rate of 15%. The deductible limit will also be expanded from 10 million won to 12 million won per year.
Support will also be strengthened for youth seeking to move from monthly rent to jeonse. Eligibility for support with the guarantee fee for jeonse deposit return guarantees will be expanded to up to 200% of the median income. The income requirement to open a Youth Housing Dream Account will be raised from 50 million won per year to 70 million won.
Public rental supply for young people will also increase. The government will establish "universal-type public rental housing for youth," reflecting youth preferences such as proximity to transit hubs and larger floor areas. More than 50% of the newly introduced universal-type public rental units will be supplied to youth. To this end, the support cap will be raised to a maximum of 240 million won, and the income and other move-in criteria will be eased to around 140% of the median income.
The Ministry of Land, Infrastructure and Transport (MOLIT) will also push a new public sales model to help young people with limited initial assets purchase homes. Under the "equity accumulation type," residents initially pay only part of the sale price and then gradually acquire equity over 20 to 30 years. Under the "profit-sharing type," the housing fund provides low-interest support for home purchase funds and shares the gains realized when the home is sold.