The Ministry of Land, Infrastructure and Transport allocated 30 trillion won for next year's public dwellings supply budget. That is up 41.5% from this year's main budget of 2.12 trillion won. The Ministry of Land, Infrastructure and Transport (MOLIT) plans to supply 218,000 public dwellings next year and more than 1.1 million by 2030.
The Ministry of Land, Infrastructure and Transport (MOLIT) on the 1st announced a "2027 budget proposal" with these details. The 30 trillion won budget for next year's public dwellings supply accounts for 43.5% of MOLIT's total 69 trillion won budget proposal. As concerns grow over a shortage of dwellings supply centered on the greater Seoul area, the intent is to increase public rentals and public sales, and to move up groundbreakings at private dwelling business sites.
Next year's public dwellings supply target is 218,000 units. That is 24,000 units, or 12.4%, more than the 194,000 units planned for this year. By type, there will be 172,000 public rentals, 34,000 public sales, and 12,000 public-supported private rentals.
Through this, the government plans to steadily carry out its goal of supplying more than 1.1 million public dwellings by 2030. Public dwellings include not only public rentals and public sales but also private rental dwellings that receive public support.
The budget to stabilize housing for young people was also greatly increased. The Ministry of Land, Infrastructure and Transport (MOLIT) plans to invest 620 billion won next year in universal public rental dwellings being newly introduced. The total planned supply is 33,000 units. Of these, 26,000 are construction-type, 2,000 are purchase-based rentals, and 5,000 are jeonse rentals.
Universal public rentals are dwellings with lower entry thresholds than existing public rentals so that various income groups, including young people, newlyweds, and the middle class, can move in. At least 50% of the supply will be allocated to young people without a home. The intent is to provide young people who have difficulty securing funds to buy dwellings or jeonse deposits with options for long-term, stable residency.
The budget for monthly rent support for young people will rise 78.4% from 130 billion won this year to 231.9 billion won next year. The Ministry of Land, Infrastructure and Transport (MOLIT) will also expand the eligibility and support period for monthly rent assistance for young people starting next year.
The income standard for young households will be eased from the current 60% or less of the median income to 100% or less. Based on a single-person household in 2027, young people with a monthly income of about 2.73 million won or less will be able to apply. However, along with the income standard, other requirements such as being without a home and asset thresholds must also be met.
The support period for monthly rent will also be extended. For young people at or below the near-poverty class, the maximum support period will be doubled from the current 24 months to 48 months. The measure aims to reduce the housing burden on low-income young people who face difficulties due to delayed employment and rising monthly rents.
Financial support will also be newly introduced to move up private dwellings supply. The Ministry of Land, Infrastructure and Transport (MOLIT) allocated 169.6 billion won for the "housing project financing (PF) loan interest subsidy program." If a dwelling project site that has taken out a PF loan breaks ground earlier than originally planned, the government will subsidize part of the loan interest.
The aim is to ease the financial burden on sites that are postponing groundbreaking due to high interest rates and rising construction costs, thereby moving up the actual timing of dwellings supply. It is also expected to help reduce the vicious cycle in which PF interest swells the longer groundbreaking is delayed, worsening project viability again.
It will invest 100 billion won in "PF anchor REITs," in which public funds participate from the early stages of development projects. PF anchor REITs are a method in which the public sector participates as an initial investor in dwelling projects facing fundraising difficulties to enhance project stability and credibility.
When public funds go in first to lower project risk, it has the effect of drawing follow-up investment from private financial companies. The government plans to promote the start of new projects while minimizing groundbreaking delays at business sites already underway.