South Korea’s Ministry of Land, Infrastructure, and Transport announced plans to increase the priority housing allocation for families with newborns under its special housing supply program for newlyweds. (Image courtesy of Yonhap)
SEOUL, Dec. 30 (Korea Bizwire) — South Korea’s Ministry of Land, Infrastructure, and Transport announced plans to increase the priority housing allocation for families with newborns under its special housing supply program for newlyweds.
Under new rules, the allocation for such families will rise from 20% to 35%, reflecting a significant shift aimed at addressing the nation’s declining birthrate.
The proposed amendment to the Housing Supply Regulations, which is open for public consultation until February 4, 2025, will also adjust income-based qualifications for these benefits.
For households with children under two years old and earning below the average urban worker’s household income, the priority allocation will increase from 15% to 25%. Similarly, households earning up to 120% of the average income will see their allocation rise by 5 percentage points, reaching 10%.
However, this expanded support for families with newborns comes with trade-offs. The priority allocation for childless newlyweds meeting income criteria will decrease. Households earning below 100% of the average income will see their share drop from 35% to 25%, while those earning up to 120% will see a reduction from 10% to 5%.
Despite these changes, the overall priority allocation for newlyweds under the special housing supply program remains unchanged at 70%. The remaining 30% will continue to be distributed via a lottery system, ensuring opportunities for those meeting asset qualifications.
This adjustment follows the government’s broader initiative, launched in June 2024, to counteract South Korea’s declining birthrate. As part of this effort, the special supply for newlyweds in private housing developments was increased from 18% to 23%.
With annual private housing supply projected at 200,000 units, around 46,000 units are reserved for newlyweds, of which approximately 16,100 units (35%) will be prioritized for families with newborns.
Earlier this year, the government also introduced a Newborn Special Supply category in public housing programs, allocating up to 35% of public housing units under the “New Home” initiative to families with newborns.
Officials emphasized that these measures aim to strengthen housing support for families with young children and encourage higher birthrates, as South Korea’s aging population and low fertility rates continue to pose long-term economic and social challenges.
M. H. Lee (mhlee@koreabizwire.com)
