Introduction of 'Newborn Special Task Force' System to Address Low Birthrate Issue - Providing Housing and Financial Benefits to 70,000 Annual Birth Households

The South Korean government has decided to introduce the 'Newborn Special Supply' system to increase the birthrate, providing housing and financial benefits to 70,000 households annually. This system offers home and rental loans at 1-3% lower rates than the market rates, and it aims to address the declining birthrate issue by granting benefits to households with children regardless of marital status.

 

This government's 'Newborn Special Task Force' system provides a substantial and comprehensive response to the low birthrate issue, positively influencing the reduction of economic burdens related to childbirth and childcare and enhancing households' willingness to have children.

 

The Ministry of Land, Infrastructure and Transport recently announced "Residential Support Measures to Overcome Low Birthrate." This plan was developed as a follow-up strategy in the field of housing policy after President Yoon Seok-yeol presided over a meeting of the Low Birthrate and Aging Society Committee in March.

 

According to this plan, the ministry stated, "Through radical support for birth households, we will create an environment for raising children." The three main tasks presented are 'Birth Household Housing Supply,' 'Birth Household Financial Support,' and 'Improvement of Housing Subscription System.'

 

Firstly, the ministry plans to provide housing to 70,000 households annually. Among these, 30,000 units will be provided through public sales, 10,000 through private sales, and 30,000 through public rentals. The beneficiaries of the 'Newborn Special Priority Supply' are households that have become pregnant or given birth within two years from the date of tenant recruitment announcement. They must also meet specific income and asset criteria to be eligible for application.

 

Furthermore, loans support for birth households has also been established. The interest rate for home purchase loans will be set between 1.63% and 3.3% for five years, and for rental deposit loans, the rate will be between 1.13% and 3.0% for four years. An additional interest rate reduction benefit of 0.2 percentage points per newborn will be provided upon childbirth. Additionally, the income requirement has been set at 130 million won or less, and it has been adjusted to be more than twice the standards of existing home purchase and rental deposit loans.

 

Moreover, the issue of disadvantageous 'marriage penalties' in housing subscriptions and home loans after marriage has also been addressed. The eligibility criteria for special public supply application have been adjusted upwards from 1.4 times the income of unmarried households to 2 times the income of dual-income households. Couples can now also make 'individual applications' simultaneously.

 

Furthermore, a system allowing the consolidation of the spousal subscription period for housing subscription accounts has been introduced, and housing or subscription winnings owned by a spouse prior to marriage will be excluded as disqualifying factors. Special support conditions for two or more child households have also been established for public rentals and private sales.

 

This government's 'Newborn Special Task Force' system provides a substantial and comprehensive response to the low birthrate issue, positively influencing the reduction of economic burdens related to childbirth and childcare and enhancing households' willingness to have children.