As the number of vacant houses rapidly increases due to low birth rates and an aging population, various methods for managing vacant houses are emerging. The government and local governments, which are witnessing the vacant house issue, are pouring out plans for managing and utilizing vacant houses, such as providing subsidies when demolishing vacant houses and renting newly renovated vacant houses for only 10,000 won a month. In the private sector, there are attempts to renovate abandoned vacant houses into accommodations or stores.
However, there are calls for the expansion of government support to solve the vacant house issue. Although there is a dedicated organization at the local government level for managing vacant houses, its management capability is insufficient. Additionally, local governments with low financial independence cannot actively engage in the maintenance of vacant houses. Over the past five years, the success rate of the vacant house maintenance has been only 0.3% of the total.
◇Government 'vacant house survey' begins…Local governments also showcase 10,000 won rental vacant houses
In 2022, the government established the 'National Vacant House Survey Integrated Guidelines' to properly assess the current status of vacant houses. The Ministry of Land, Infrastructure and Transport, the Ministry of Agriculture, Food and Rural Affairs, and the Ministry of Oceans and Fisheries specified the detailed implementation procedures for the vacant house survey and designated a specialized department for vacant house management. Since the criteria for vacant houses have varied among departments, making it difficult to assess the current situation, they aimed to unify these standards to accurately understand the situation.
The government has simplified the demolition procedures for small vacant houses in areas with declining populations. For small structures limited to two stories and less than 8 meters in height, they have eliminated the need for consultation with architects, allowing the permit issuing authority to review the demolition plan, thereby removing unnecessary expenses and procedures. Furthermore, since last year, the new Rural Community Maintenance Act has been established, which reduces property taxes according to local tax law if abandoned vacant houses are demolished. If a local government issues a demolition order and it is not followed, a compliance penalty is imposed.
Local governments in small and medium-sized cities are pouring out practical solutions to the vacant house issue. A vacant house business official noted, "Local governments that directly see the increase in vacant houses as the population declines are clearly proactive in solving the vacant house problem."
Jangjin-gun, which received the President's commendation last year through its vacant house remodeling policy, is trying to attract people by utilizing vacant houses. With a population of 32,000, Jangjin-gun, which is facing a population extinction crisis, is conducting the 'Jangjin-Pum-ae' project, where they borrow vacant houses from owners for free, renovate them, and then rent them out to those wishing to relocate to the countryside. If a vacant house owner rents their property for free, Jangjin-gun invests 50 million won for a 5-year lease and 70 million won for a 7-year lease to remodel the house.
Jangjin-gun rents the transformed houses to new residents for a security deposit of 1 million won and a monthly rent of 10,000 won. Particularly, when applying to reside in a vacant house, preference is given to those aged 19 to 45 to encourage the influx of younger generations. This vacant house utilization project has gained immense popularity, with an average competition ratio of up to 20 to 1 per household. A young person who applied for the vacant house residence project in Jangjin-gun said, "While considering relocating to the countryside, the fact that I could live without the burden of living expenses for two years and had the option to renew twice was appealing."
As a result, over 20 local governments across the country have benchmarked Jangjin-gun's vacant house utilization methods. Cheongyang-gun in Chungcheongnam-do is conducting the 'Vacant House Connection Project,' renting out remodeled vacant houses to young people. Goseong-gun in Gyeongsangnam-do is also utilizing vacant houses for the 'Healing Countryside Experience' project.
Most local governments provide subsidies for the maintenance or demolition of vacant houses. For example, Suncheon City in Jeollanam-do supports subsidies for the demolition of vacant houses. Furthermore, if a vacant house owner wants the local government to demolish the house directly, they will do so for free but will utilize the land for public purposes, such as a public parking lot or park, for a certain period.
◇The private sector also utilizes vacant houses…Effect on local economic revitalization
The private sector is actively working on projects utilizing vacant houses. The vacant house-related startup 'Blank' supports long-term accommodations using vacant houses. Blank rents vacant houses for 5 to 10 years, makes repairs, and then returns them. Depending on the condition of the vacant house, it can also be rented for free. This way, they convert vacant houses into accommodations for long-term rental. Currently, Blank operates eight vacant house accommodations in regions such as Yeongju and Danyang.
Moon Seung-kyu, the CEO of Blank, noted, "Even if vacant houses are inherited, since most children live in cities, they often can't take action. So when we suggest utilizing these vacant houses as accommodations, they are generally positive," adding, "Inherited vacant houses are often not sold easily, and many people have plans to use them after retirement, but they can't manage them and would rather lend them out to ensure they can use them later."
Such methods of utilizing vacant houses are leading to local economic revitalization. In collaboration with the Korea Tourism Organization, Blank created the long-stay housing project 'Idle House Yeongju' utilizing vacant houses, finding that customers engage in local purchases of food and daily necessities, thus stimulating consumption. Five teams participated in this vacant house project, and excluding accommodation fees, the average spending per team was found to be about 2 million won per week.
Blank is also considering a subscription service for vacant houses. CEO Moon stated, "Currently, we are renting vacant houses individually, but we plan to switch to a subscription model once the quantity increases."
Another vacant house regeneration startup, 'Dajayo,' is also remodeling vacant houses that owners find difficult to manage, renting them out as accommodations that allow tourists to experience local sentiments for free over ten years.
◇"A mere individual battle"…Need for a government-level solution
However, despite the efforts of the government, local governments, and the private sector, there is criticism concerning the absence of a 'control tower' for solving the vacant house issue. In August of last year, a vacant house maintenance unified support task force (TF) was launched, led by the Ministry of the Interior and Safety, with participation from the Ministry of Land, Infrastructure and Transport, the Ministry of Agriculture, Food and Rural Affairs, and the Ministry of Oceans and Fisheries, but visible results have yet to materialize. The guidelines released by the government for the vacant house condition survey are merely foundational measures for assessing the current status of vacant houses, hence more in-depth solutions are required.
There are also calls for budget support at the government level. As the speed of increase in vacant houses accelerates, the pace of population decline also quickens, which further diminishes local governments' financial independence. Even when local governments attempt to manage on their own, there are limitations to their ability to manage vacant houses due to budget constraints.
The average financial independence rate in 85 population-declining regions across the country, excluding the metropolitan area and Sejong, stands at 10.4%, which is significantly lower than the national average of 43.3%. Consequently, the pace of empty house management projects initiated by local governments is sluggish. While vacant houses across the country have increased by 34%, the cleaning project performance in non-capital areas is only 0.3% of the total. Although the government decided to invest 5 billion won in vacant house maintenance starting last year, it remains insufficient to manage the increasing vacant houses.
A representative from a vacant house regeneration project stated, "Local governments want to collaborate with private operators to address the imminent vacant house issue, but there are limitations in terms of budget and other aspects to propose fundamental solutions," adding, "Consequently, some vacant house regeneration projects previously pursued by local governments have been halted, and the vacant house bank project is only being piloted." He further stated that "beyond local governments' interest, the central government should announce tax benefits or measures for the management and utilization of vacant houses."