Park Hong-geun, Minister of the Ministry of Planning and Budget, stated on October 8 during a National Assembly audit that the proposed budget for next year reflects the necessary level for youth housing.
Democratic Party lawmaker Kim Young-hwan pointed out that the homeownership rate among young people has dropped from 33.6% in 2017 to 21.2% in 2024. He noted that special allocations have become more competitive due to increased income thresholds, and financial support is designed primarily for low-income individuals, making it difficult for young people to receive assistance. Additionally, he highlighted that there are approximately 90,000 applicants waiting for public rental housing from LH, while the expected number of available units is only about 8.3% of that.
Minister Park expressed understanding of the youth housing issue, stating that the government plans to supply 1.19 million public housing units by 2030 and aims to increase the proportion of long-term public rental housing to over 10% of total housing. He explained that the budget necessary to secure the target number of units has been included in the proposed budget for next year. He also mentioned that if there is a budget shortfall, the government would consider using surplus tax revenue to further support youth housing.
Fellow party member Oh Gi-hyeong proposed expanding the purchase rental program for young people and newlywed couples from approximately 45,000 units this year to an additional 15,000 units next year, requiring an increase of about 2.6 trillion won. He also called for the realistic adjustment of LH's purchase prices and an expansion of the housing and urban fund, asserting that over 5 trillion won is needed for direct supply and fund expansion.
Oh noted that a decrease in permits from 2022 to 2024 could lead to a housing supply shortage from 2026 to 2028, emphasizing the need for budget allocation to increase short-term supply.
Minister Park acknowledged the need for expanding purchase rentals but emphasized the importance of considering the actual number of units that can be secured. He stated that the purchase prices have already been raised and that he would review whether additional funding is necessary.
In response to calls for expanding the housing and urban fund, he indicated that, considering the current surplus funds and public fund management deposits, there is no urgent need for additional expansion. However, he acknowledged that the fund's situation has worsened compared to the past and that they are reviewing potential improvements to the system. He added that issues related to LH's management should be addressed by the Ministry of Economy and Finance.
The issue of performance management for youth budgets was also raised. Democratic Party lawmaker Kim Nam-jun pointed out that the youth-related budget for 2027 is set to reach a record 43.3 trillion won, but two out of ten new projects under the Future Response Fund's youth account, including the 'Our Child Independence Fund' and 'Youth Opportunity Fund,' lack performance indicators.
Minister Park responded that the Financial Services Commission, the responsible ministry for those projects, has not been able to provide specific performance indicators. He stated that since integrated evaluations were introduced for the first time this year, they will review the validity of project goal setting moving forward.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.