The government is set to introduce a policy mortgage aimed at supporting first-time homebuyers under the age of 39 in purchasing non-apartment properties valued at up to 400 million won. Online reactions have surfaced regarding this initiative.
Critics argue that the government's plan to eliminate the requirement for desks in goshiwon (small residential units) and allow bathtubs instead effectively forces young people to choose between villas and goshiwon.
According to a comprehensive financial plan for stabilizing the real estate market announced by the Financial Services Commission on August 13, the 'Youth Future Bogeumjari Loan' will be launched in January 2027. This program is designed for first-time homebuyers under 39 years old, allowing them to purchase non-apartment properties with a maximum area of 85 square meters.
The loan-to-value (LTV) ratio will be set at a maximum of 80%. Income eligibility is capped at 70 million won per year, and for newlywed couples, the income threshold will be based on the earnings of one spouse rather than the combined income.
The government describes this initiative as a 'ladder to home ownership at the level of monthly rent.' Considering that the average monthly rent for non-apartment properties is around 800,000 won, the government provided an example where a loan of 200 million won over 30 years at a 3% interest rate would result in a monthly payment of approximately 850,000 won.
However, the government's push to relax regulations on goshiwon as a viable living space for single-person households has intensified backlash online.
On August 12, the Ministry of Land, Infrastructure and Transport announced plans to revise building standards for multi-use facilities. Currently, goshiwon can have individual bathrooms and shower stalls, but bathtubs are not permitted, and facilities for studying, such as desks, are required. The ministry plans to change these standards to allow bathtubs and remove the desk requirement, with implementation expected as early as January 2027.
Despite the government's explanation of these two policies as a 'youth housing ladder,' critics argue that they ultimately shift the burden of non-apartment housing onto young people.
Online users expressed their frustration, with comments like, 'Are you telling us to live in villas for life instead of aspiring for apartments?' and 'This translates to 'just live in a villa.' Others pointed out that in major areas of Seoul and Gyeonggi, many villas already exceed 400 million won, suggesting that the government is merely pushing young people to buy properties that match those prices.
Additionally, some questioned the logic of equating renting with homeownership, stating, 'Buying a house and paying rent are completely different issues, so I don't understand how you can say you can buy a house at the level of monthly rent,' and 'Is this really the right approach when it just costs more money?'
Some have raised concerns about the effectiveness of the policy, suggesting it presents young people with a choice between villas and goshiwon, and appears to be a strategy to encourage non-apartment purchases for those unable to afford apartments.
* This article has been translated by AI.
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