Kim Moon-soo, a candidate for the presidential primary from the People Power Party, announced on the 22nd a pledge to create a "half-price rent zone" that would increase the supply of studio apartments and significantly lower monthly rent by easing the floor area ratio and building coverage ratio in college areas. He noted that he would also significantly expand tax benefits for suppliers of officetels, exempting them from the count of housing units subject to heavy taxation and providing a 5% tax credit each year for those selling after holding for over 10 years.
On that day, Kim announced the "three major pledges for real estate for young people" at his election office in Yeouido, Seoul. The main point is to provide a pleasant living environment for young people throughout their life cycles, from college to employment, marriage, and childbirth.
He first stated that he would create the "half-price rent zone." The plan is to provide incentives such as easing the floor area ratio and building coverage ratio and supporting renovations to encourage a significant supply of studio apartments in areas near universities. According to Kim's team, the non-apartment occupancy rate among the youth is 64.8%, but the number of public officetel construction starts in 2023 is 17,900 units. He also revealed a plan to specially supply over 10% of public housing tailored for one-person households.
Kim said, "We will maintain the market's autonomy while reducing the burden on college students and enhancing the value of the landlord's assets, creating a 'win-win' structure."
He emphasized that he would significantly increase tax benefits. He announced that they would exclude officetels, where many young people reside, from the count of housing units subject to heavy taxation and provide a 5% tax credit each year for those selling after holding for over 10 years.
He also promised to supply 25% of public land as "generational coexisting" apartments equipped with care facilities. The idea is to create a new form of dwelling where couples with newborns can live together with their parents. To achieve this, the plan is to provide incentives for changing the land use and floor area ratios to encourage private companies to build generational coexisting apartments. He also stated that he would establish a new "combined application system" that grants special points if the parents dispose of or rent their existing homes to live with their children.
Kim expected, "Housing issues are the most fundamental and urgent problems throughout the entire life journey of young people, from college admission to employment, marriage, and childbirth. If young people are freed from the housing problem, they can focus on their studies and economic activities, and this can create a virtuous cycle that positively impacts employment and low birth rates."