Lack of homeownership is a barrier to child-rearing. Seoul city wants to break it down.

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Lack of homeownership is a barrier to child-rearing. Seoul city wants to break it down.

Published: 15 May. 2025, 18:23

Audio report: written by reporters, read by AI

Children are seen running at a country club in Anyang, Gyeonggi, during a free open house on May 7. [NEWS1]

As government statistics show that a lack of home ownership induces reluctance to have children, the Seoul Metropolitan Government announced plans Thursday to cover housing expenses for couples who do not own their residence.

The experimental policy, a first among local governments nationwide, aims to ease the financial burden of housing for new parents in the capital.

Starting May 20, eligible households can apply for a program whose name roughly translates to “Housing Support for Childbirth in Non-Homeowning Households” via the city’s online portal.

The initiative is part of the city’s broader low birthrate response project targeting newlyweds. High housing costs in Seoul have been widely cited as a major deterrent to having children.

Seoul targets nonhomeowners

Seoul’s toxic housing prices are one of the factors that make people consider having children.

The percentage of childless newlyweds without their own houses rose from 38.5 percent in 2015 to 50.5 percent in 2022 — an increase of 12 percentage points over seven years, according to Statistics Korea. By contrast, the percentage of newlywed homeowners who didn't have kids increased less, from 31.6 percent to 40.4 percent, over the same period.

A child walks by advertisements for housing loans outside a bank in central Seoul on Dec. 1, 2024. [NEWS1]

Seoul’s data also show that of the 334,940 people who moved from Seoul to Gyeonggi or Incheon in recent years, 63.1 percent cited “family and housing” as the reason for relocation.

In order for newlyweds to be able to live in Seoul without giving up on having children because of housing, Seoul has introduced a new policy. This is the first project in the country to provide up to 7.2 million won ($5,170) for two years to households without housing who have given birth to children.

Up to 300,000 won per month, which is the difference in housing costs between the near-Seoul metropolitan area and Seoul, is provided for two years.

For families with multiple births or who have additional children during the support period, the benefit can be extended to four years, totaling up to 14.4 million won in support.

Apartments in downtown Seoul are seen from Yeouido Square Tower in Yeouido, western Seoul, on Aug. 16, 2022. [YONHAP]

But not for all couples

The subsidies will be paid in four installments every six months, on a post-payment basis. Households must submit proof of monthly rent or interest paid on a jeonse — a lump-sum deposit — loan.

For example, if a family pays 200,000 won per month in interest on a jeonse loan, the city will match that amount. Those who signed jeonse contracts without taking out a deposit loan or do not actually pay monthly rent are excluded from the support target.

Applicants must have had a child between Jan. 1 and June 30 this year and fall under 180 percent of the median income. For a three-person household, the income cap is 108.5 million won per year; for a four-person household, it is 131.7 million won.

Eligible homes must be leased properties in Seoul with jeonse deposits of 300 million won or less, or monthly rent combined with a converted deposit value not exceeding 1.3 million won per month. Public rental housing provided by the Seoul Housing & Communities Corporation (SH) or the Korea Land and Housing Corporation (LH) is excluded.

Villas and small homes are seen in a neighborhood in Seoul on Dec. 17, 2024. [YONHAP]

To remain eligible, recipients must continue to meet the non-homeownership requirement. The subsidy will end if the household purchases a home or moves outside of Seoul. However, winning a housing lottery for a presale apartment will not disqualify the household.

Applications are open until July 31. Required documents include a lease agreement, a family registry and a housing ownership status report from the national housing portal.

The Seoul city government will review applications in August and September, announce the final recipients in October, and begin disbursing payments in December.

“We want to reassure families that raising children in Seoul is possible through this new policy,” said Kim Seon-sun, director of Seoul Metropolitan Government’s Women and Family Policy Office.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE SOO-KI, MOON HEE-CHUL [[email protected]]