월급 273만원 청년까지 월세 지원…월세 세액공제율도 17%로 상향

The government is setting up a chain of housing options for young people to tackle housing insecurity. The government unveiled a package of support measures in its “Youth Growth Phase by Phase Comprehensive Investment Promotion Strategy” released on the 28th. The strategy aims to build a housing ladder of renting, leasing, and saving for young people.

This is driven by high income-to-monthly rent ratios and the overlapping risk of lease termination fees. The government identified the lack of public housing for young people with low initial assets and insufficient tailored housing finance as issues.

The government expanded the eligibility for a monthly allowance of up to 20 million won for up to 24 months, raising the benchmark from the 60th percentile of median income (154 million won for a single household) to 100th percentile (273 million won). It also extended the rental support period from 24 to 48 months for those with lower income.

Young people with savings of 8 million won or less will receive a reduced tax rate of 17% on rental expenses instead of the standard 15%, with the cap on the tax credit increased from 1 billion won to 1.2 billion won annually. A combined “young person's rent and mortgage guarantee” will be introduced in 2024, allowing combined borrowing for lease and mortgage guarantees.

The government is also strengthening lease guarantee insurance, with a coverage limit of 90% of the down payment (up to 2 trillion won) and support for lease return guarantee fees for households earning up to 200% of the median income. A separate “universal public rental housing” will be established, and new criteria for leasing public rentals will be implemented to widen eligibility.

Lower-income households will receive higher deposit guarantees, from a maximum of 1.2 billion won to 2.4 billion won. Young people with low initial assets can benefit from “house purchase vouchers” that allow them to purchase apartments for up to 4 billion won under relaxed conditions.