The surplus of the Housing and Urban Fund has decreased from 49 trillion won in 2021 to 13.8 trillion won as of August this year. This marks a reduction of approximately 35.2 trillion won compared to 2021 and a decline of 628 billion won over the past eight months from the end of last year.
According to data submitted by Kim Jong-yang, a lawmaker from the People Power Party, to the Ministry of Land, Infrastructure and Transport, the surplus balance was recorded at 13.7592 trillion won at the end of August. This represents a decrease of about 4.4% from the 14.3872 trillion won reported at the end of last year.
The Housing and Urban Fund is utilized for various housing-related projects, including support for rental housing, loans for home purchases and jeonse (a type of lease), and housing supply assistance. The surplus has seen a significant decline from 48.9825 trillion won in 2021 to 28.7225 trillion won in 2022, and further down to 18.8663 trillion won in 2023. It briefly increased to 14.3872 trillion won last year but has since dropped back to the 13 trillion won range this year.
Kim's office analyzed that the decrease in the number of subscription savings account holders, a key source of funding for the fund, along with increased demand for policy loans and public housing support, has contributed to this situation. According to data from the Korea Real Estate Agency, the number of subscription savings account holders fell from 28.56 million in August 2022 to 25.74 million in August this year, a decrease of 2.82 million.
As of August, the overall operating yield of the Housing and Urban Fund's surplus was recorded at 6.05%, while the long-term operating asset yield stood at 7.45%.
Kim emphasized the need to adjust project priorities and clarify funding procurement and operational plans as the demand for fund expenditures increases. He stated, “The government must transparently disclose its fund management plans and specific funding procurement strategies to the public.”
* This article has been translated by AI.
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