"In Korea, It Takes 15 Years to Buy a Home"... Japanese Media Highlights Spread of 'False Single Status' Phenomenon

[Financial News] Japanese media has reported that one in five newlywed couples in Korea is delaying marriage registration to avoid real estate regulations, a phenomenon referred to as 'False Single Status.' Soaring housing prices and unfavorable loan conditions for married couples have been identified as the main drivers behind this trend.
On the 16th, Nihon Keizai Shimbun (The Nikkei) stated, "Twenty percent of newlywed couples in Korea are in a False Single Status," adding, "As of 2024, the proportion of newlyweds who have postponed marriage registration for over a year has reached 20%." The publication analyzed that, although East Asian societies like Korea have traditionally placed great importance on marriage, skyrocketing real estate prices and shifting perceptions among younger generations have changed the social atmosphere.
The Nikkei pointed out that Korea's institutional environment imposes a so-called 'marriage penalty.' Policy financial products and Mortgages are prime examples. While single individuals with an annual income below 60 million won can access policy financial products, newlyweds face a higher threshold, as their combined income must not exceed 85 million won. Moreover, loan assessments are based on the couple's combined income, making the process more challenging.
Soaring real estate prices have also been cited as a key factor in the spread of False Single Status. The Nikkei reported that the average sale price of an apartment in Seoul has surpassed 1.4 billion won, setting a new record. It noted that, at the average income level in Korea, it would take 15 years of saving every penny to afford a home. As a result, more couples are holding wedding ceremonies but delaying or avoiding marriage registration, which is also seen as contributing to the declining birth rate.
Last month, the same media outlet also pointed out that the rise in non-marital births in Korea is linked to real estate issues. According to the report, the number of children born out of wedlock in Korea reached 14,000 last year, accounting for 5.8% of all births and surpassing the 5% mark for the first time. This trend is interpreted as a statistical reflection of the growing tendency to delay marriage registration, or False Single Status.
Japanese media compared this trend to the 'disguised divorce' phenomenon that was prevalent in China during its real estate boom. In major Chinese cities at the time, couples would legally divorce to separate their households and purchase additional properties, prompting authorities to introduce regulations restricting home purchases for a certain period after divorce.
The nature of the low birthrate problem differs between Korea and Japan. The Nikkei explained that in Korea, many couples marry but stop after having their first child, leading to a sharp decline in the birth rate. In contrast, in Japan, the avoidance of marriage itself is the main reason for the drop in births. In fact, the 'lifetime childlessness rate' among Japanese women is 28.3%, the highest among Organisation for Economic Co-operation and Development (OECD) member countries, while the rate for Korean women is 12.9%, about half that of Japan.


hsg@fnnews.com Han Seung-gon Reporter