A public housing program offering rent at 1,000 won per day—roughly 30,000 won ($22) monthly—is sweeping across South Korea. The "Cheonwon Housing" initiative, which started in Incheon, has expanded to Pohang, Yeongcheon, Yeosu, and Jeju, attracting thousands of applicants amid soaring housing costs in the Seoul metropolitan area.
Incheon sees 5-to-1 competition
Incheon city announced that 3,419 households applied for 700 units during the preliminary tenant registration period from May 16-20, yielding an average competition ratio of 4.88 to 1.
Demand was particularly intense for specific categories. The newlywed and newborn Type II category drew 1,735 applicants for 200 units, creating an 8.68-to-1 ratio. The long-term lease type attracted 1,684 applicants for 500 units at 3.37 to 1.
City officials attributed the surge to policy changes allowing applicants to select housing in their preferred neighborhoods. "The ability to stay within existing living areas proved attractive to actual end-users," a city official said.
The program enables residents to stay for up to six years at approximately 30,000 won monthly. Eligibility covers newlyweds married within seven years, couples planning to marry, and households with newborns. Incheon doubled its supply from 1,000 units last year to 2,000 this year.
The city plans to announce preliminary tenants on June 4 and begin move-ins as early as July. An additional 300 units through direct purchase will be offered next month.
"Cheonwon Housing is not simply residential support but a policy to change the structure where people delay marriage and childbirth due to housing cost burdens," Incheon Mayor Yoo Jeong-bok said. "As it spreads nationwide, we will further improve the policy."
Program spreads to regional cities
The initiative has rapidly expanded beyond Incheon.
Pohang in North Gyeongsang Province began accepting applications on May 5. Around 100 young people and newlyweds lined up at the housing welfare center on the first day. Approximately 1,000 applications were submitted within two days for 100 available units.
Last year, Pohang saw 854 households compete for 100 units—a ratio exceeding 8 to 1. Notably, 19 households relocated to Pohang from other regions specifically for the program. This year, the city eased eligibility requirements to consider only the applicant's income and assets, and created a separate category for non-residents.
"Establishing a residential foundation where young people and newlyweds can settle stably is a crucial investment for the city's future," said Kim Bok-su, director of Pohang's Urban Safety and Housing Bureau.
Yeongcheon city partnered with the Gyeongbuk Development Corporation and attracted 441 applicants for 20 units—a 22-to-1 ratio. The corporation plans to expand the program province-wide.
Yeosu in South Jeolla Province went further with zero-deposit housing. Since 2024, the city has provided deposit-free homes to young people and newlyweds. South Jeolla Province operates a "10,000-won housing" program at 10,000 won monthly, with eight counties including Jindo and Goheung scheduled for sequential move-ins through 2027.
Jeju Special Self-Governing Province launched 30,000-won monthly public rentals last year, covering the remaining rent for newlyweds and families with children born within seven years.
Seoul's 1.5 million won rent drives exodus
The surge in demand reflects skyrocketing housing costs in the capital region. Average monthly rent for Seoul apartments has surpassed 1.5 million won, prompting young people and newlyweds to seek ultra-low-cost rentals in provincial areas.
Rep. Lee Jong-wook of the People Power Party, opposition whip on the National Assembly's Land, Infrastructure, and Transport Committee, wrote on Facebook on May 20: "At today's floor strategy meeting, I pointed out the sharp rise in Seoul apartment prices, monthly rents, and officially assessed values, and called for immediate repeal of the Lee Jae-myung government's anti-market regulations and effective supply measures."
Citing Korea Real Estate Board data, Lee stated: "In February, the average Seoul apartment price exceeded 1.3 billion won—312 times the average monthly wage of 4.2 million won, a record high. The Lee Jae-myung government has reopened an era where you must save for 26 years without spending a single won to buy a home."
On the rental market, he added: "This week's average Seoul apartment rent hit a record 1,515,000 won. More than one-third of wages—36%—is going to rent." He noted that Seoul apartment assessed values rose 18.67% as of May 18, the largest increase in five years.
The rapid nationwide spread of Incheon's initiative within roughly a year—and politicians' engagement in housing debates—signals that the housing crisis for young people and newlyweds has reached a critical point. Experts emphasize that while dramatically low rents help, expanded supply and institutional improvements must follow.