Seoul proposes to make public housing open to all newlyweds with newborns

Social Affairs

Published: 23 Jan. 2024, 17:34

Seoul proposes to make public housing open to all newlyweds with newborns

Kim Hyeon-ki, chairman of the Seoul Metropolitan Council, announces a series of measures to boost the city's low birth rate at a New Year press conference held at the city legislature in Jung District, central Seoul, on Tuesday. [YONHAP]

In an effort to spur births in the capital, the Seoul Metropolitan Council on Tuesday announced a proposal to make all newlywed couples with newborns eligible for public housing.

The council said the proposal is part of a broader shift to providing universal welfare benefits away from means-tested measures.

Under the city’s existing regulations, only Seoul residents who make less than 120 percent of the average wage are eligible for public housing.

For two-person households, that translates to a monthly income of 6 million won ($4,500) or less.

The city’s rental subsidy program is currently only open to households earning less than 150 percent of the median income, which amounts to less than 6.6 million won per month for three-person households.

However, according to Kim Hyeon-ki, chairman of the Seoul Metropolitan Council, the city legislature is now looking at extending public housing eligibility to all households and newlywed couples who are expecting.

“At present, couples that have a child are excluded from benefits designed to boost the birth rate due to income-related qualifications,” Kim said, adding that the elimination of the household earnings threshold for public housing is “intended to boost the effect of birth promotion policies.”

Under the council’s proposal, all residents with a newborn child will qualify for housing provided by the city-owned Seoul Housing and Communities Corporation (SH).

The council chairman also said the city legislature will discuss its proposed change with the Seoul Metropolitan Government.

The high cost of housing, along with private education, is frequently cited by young Koreans as an impediment to marrying and having children.

The city’s birth rate in 2022 was 0.59 children per woman, the lowest among cities in the country, which as a whole had an average of 0.78 the same year, the lowest among OECD countries.

The city council plans to make 4,000 city-owned apartments available annually to newlyweds and households expecting or having given birth to a child in the past year and subsidize interest payments on loans for 10,000 households per year.

The council is also investigating ways to extend subsidies to families with children. One proposal is to provide 100,000 won per month to each household with children under 18.

Under current policy, such payments cease once children turn nine.

Other proposals under consideration by the council include a one-time transportation subsidy of 700,000 won to pregnant women and monthly payments of 50,000 won to parents.

If all of the council’s proposed measures are implemented, the total amount of welfare payments an individual could access annually as a parent would rise from 86 million won to 100 million won.

The city council also plans to launch a campaign to improve public attitudes regarding parental leave.

Noting that 60 percent of Seoul’s 565 public elementary schools had less than 100 students, Kim said that the current situation “necessitates a bold birth promotion policy” and vowed to increase cooperation with the city government “to outline housing and childcare support.”

BY MICHAEL LEE [lee.junhyuk@joongang.co.kr]