By Jane Han
Staff Reporter
Newlyweds may see themselves a step closer to becoming homeowners by the year's end, as President-elect Lee Myung-bak and his transition team is actively reviewing the ins and outs of his proposed housing policy for just-married couples. The policy is to take effect in the second half of 2008.
The Ministry of Construction and Transportation said Monday that the modified housing system is set to allow married couples of less than three years, who successfully pay monthly installments of 50,000 to 100,000 won into a housing savings fund, to get long-term home financing with low interest rates. However, couples must take the benefit within a year of having their first child.
The plan, which was one of Lee's flagship campaign pledges, has been welcomed by young couples as buying a home in Korea is widely known as a cost-burdening and time consuming, but a must-do task for married couples.
A recent Kookmin Bank survey said that the average period it took for a couple to buy their own house after marriage was around 9.4 years, up two years since 2005, as local home prices have consistently been on the rise. Therefore, the initiative of the president-in-waiting is seen as a springboard for financially weak, just-starting couples.
The ministry said that the incoming government has plans to inject 4.1 trillion won to supply homes for the low-income newlyweds. It forecasts that the fresh policy will feed about 120,000 homes, each less than 80 square meters, into the market.
It added that the transition team is considering expanding the system to those who are eligible, but are already paying into a housing savings fund, to enjoy the same benefits.
Earlier, the president-elect said the reformed policy was ultimately drawn to encourage young couples from having more kids, as many are known to refrain from giving birth to a second child due to financial instability, including not owning a house.