South Korea revises public housing income rules for newlyweds

South Korea is adjusting its public rental housing policies to ease the financial burden on newlyweds, addressing what is commonly referred to as the "marriage penalty." The government announced measures to lower the eligibility threshold for public rental housing and youth asset-building programs, aiming to create a more marriage-friendly system.

Specifically, the income criteria for dual-income newlywed couples applying for Happy House public rental housing will be expanded. The maximum allowable income will increase from 130% to 160% of the average worker's income in urban areas, raising the ceiling from 7.63 million won to 9.39 million won per month. This adjustment seeks to make public housing more accessible to young couples starting their families.

Further measures include allowing existing young tenants in public housing to renew their contracts even if their income or assets exceed the limits after marriage, provided they have children under two years old. The policy also permits families with children of any age to move into larger public housing units, removing the previous age restriction for children. Additionally, the interest rate for the "Batteumteo" jeonse loan will be reduced, and a special new-born supply option for private rental housing will be introduced. The income requirements for the Youth Future Savings account for two-person households will also be relaxed.