Households with children under the age of 2 will now be able to expand their opportunities to buy a home through a separate newborn special supply in private housing subscriptions.
The Ministry of Land, Infrastructure and Transport (MOLIT) said it will implement an amendment to the "Rules on Housing Supply" from June 15, creating a newborn special supply for private housing subscriptions to support birth households.
The amendment aims to ease the housing burden on newlyweds and support efforts to overcome low birth rates by relaxing subscription requirements for birth households. It also includes measures to support housing for companies relocating to regional areas as part of regionally driven growth.
First, a newborn special supply will be created for private housing. It targets birth households with newborns under the age of 2.
Until now, private housing subscriptions had allocated only a portion of the volume within newlywed and first-time homebuyer special supplies to newborn households on a priority basis. As a result, birth households that failed to meet subscription qualifications, such as the requirement of being within seven years of marriage registration, were unable to obtain subscription opportunities.
To address this, MOLIT is creating a 10% newborn special supply for private housing as well. This allows birth households to receive subscription benefits regardless of the requirement to be within seven years of marriage.
The region-tailored supply system will also be improved. The current regional special supply system will be revised so that local governments can quickly supply housing where needed to regional migrants and employees of relocating companies.
Previously, local government heads could operate institution-recommended special supplies (10% of the total) according to standards announced by metropolitan and provincial governors. However, concerns were raised that the scope of operation was limited and that flexible response was difficult because supply standards were set by official notice.
In response, special supply targets were added so that local governments can attract companies and bring in population according to regional demand. The procedure was also simplified so that special supply can be provided immediately if recognized by the local government head.
"This amendment to the enforcement rules has expanded subscription opportunities for birth households and established mechanisms to improve the settlement conditions for companies relocating to regional areas," said Jang Woo-chul, director general of housing policy at MOLIT. "We will continue to do our best to redesign the incentive structure so that marriage and childbirth become benefits in housing subscriptions and regional areas are given preferential treatment."
