Youth Housing Dream Subscription Account to open to applicants earning up to 70 million won

[Financial News] Young people who do not own a home and earn up to 70 million won a year will be able to open a Youth Housing Dream Subscription Account, which offers interest of up to 4.5% a year.
According to the Ministry of Land, Infrastructure and Transport on the 12th, an amendment to the Housing Subscription Savings Act will raise the annual income ceiling for opening a Youth Housing Dream Subscription Account from 50 million won to 70 million won. The change follows the Housing Stability Plan announced on September 21.
Young people aged 19 to 34 who do not own a home can open an account as long as they meet the income requirement. The account will offer an annual interest rate of up to 4.5%, 1.4 percentage points higher than that of the standard Housing Subscription Synthesized Savings Account. Contributions of up to 3 million won a year qualify for a tax deduction of 40%.
The account was launched on February 21, 2024, after the existing Youth Preferential Housing Subscription Synthesized Savings Account was revamped. The changes raised the annual income threshold for opening an account to 50 million won, increased the monthly contribution limit to 1 million won, and added a tax exemption on interest income of up to 5 million won. Another advantage is that account holders selected in a housing subscription can then apply for a Youth Housing Dream Mortgage Loan. For homes with a sale price of 600 million won or less and an exclusive floor area of 85 square meters or less, borrowers can borrow up to 80% of the sale price at an annual interest rate as low as 2.2%.
The government’s move to overhaul housing subscription accounts comes amid a decline in account holders. The number of account holders, which stood at 27.18 million in 2021, fell each year, reaching 24.93 million this August. Over four years and eight months, about 2.25 million people—just over 8%—closed their accounts. The government plans to reverse this trend by expanding the benefits of opening and maintaining an account.
Support for young people’s housing costs will also be expanded. This month, the Ministry of Land, Infrastructure and Transport will ease the income requirements for Didimdol and Beotimmok fund loans. Under the Housing Stability Plan, a couple will be able to apply for a policy loan even if only one spouse meets the income criteria for an ordinary household. From 2027, eligibility for the Youth Monthly Rent Support Program will expand from households with incomes at or below 60% of the median to those at or below 100%. The monthly income ceiling for a one-person household will rise from 1.54 million won to 2.74 million won, while the support period for young people in the near-poor bracket or below will increase to 48 months. The cap on support for fees for a guarantee against the loss of a jeonse deposit will rise from 400,000 won to 500,000 won. The income threshold will be raised to 200% of the median income (65.67 million won for a one-person young adult household).
Kim Yeong-guk, head of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, said, “I hope these policy improvements will enable housing subscription account holders to enjoy enhanced benefits,” adding, “We will continue to consider ways to further strengthen benefits, including those related to housing subscription accounts.”

[email protected] Jeong Gyeong-su Reporter