The Ministry of Land, Infrastructure and Transport expanded public housing supply to the largest scale ever this year to stabilize the real estate market. To help low-income individuals secure their own homes, the so-called "no-bid" subscription system will be improved, focusing on those without housing.
On the 13th, the Ministry of Land, Infrastructure and Transport announced its "2025 work plan" under the theme "Creating a comfortable daily life for the people and a better tomorrow."
The ministry plans to supply 110,000 new rental dwellings that can be moved into in a short period through purchasing guarantees from the Korea Land and Housing Corporation (LH) over the next two years. In particular, to complement the stagnation in private housing supply, this year, a record 252,000 public dwellings will be provided. The ministry will also promote main subscriptions for 28,000 public dwellings, including 8,000 units in the third new town.
To support local governments in rapidly approving private housing projects, a real estate development project permit support center will be newly established. Through the capital expansion of the Housing and Urban Guarantee Corporation (HUG) with government investment, the plan is to enhance market liquidity with more than 30 trillion won in additional public guarantees.
The supply base of the private housing market will also be expanded through revitalization of maintenance projects and recovery of the construction economy. The ministry plans to improve systems to support the remodeling of old dwellings, including enhancing redevelopment requirements, streamlining remodeling project procedures, establishing a new permit process, and implementing a construction cost verification system.
To relieve the housing cost burden on young individuals who are early in their careers, the ministry plans to launch the "Youth Housing Dream Loan" in the first half of this year, supporting loans of up to 80% of the sale price at a minimum interest rate of 2%. The execution requirements for the Youth Housing Dream Loan are being considered for sale prices below 600 million won and sizes of 85㎡ or less.
The ministry plans to significantly increase housing supply for families with newborns by expanding the priority supply ratio for private sale dwellings from 20% to 35% and introducing a priority supply for public sale dwellings.
In particular, to stabilize housing for low-income individuals, the ministry will proceed with reforms of the no-bid subscription system, commonly referred to as "no-bid," which exacerbates market overheating, so that it can be supplied to genuine users without housing by February. To eradicate fraudulent subscriptions, the ministry will strengthen the document collection and verification processes regarding dependents and actual residence during the first half of next year.
To ensure stable management of the public policy financial loans, the "DidiMdol" (purchase) and "Buteimmok" (jeonse) loans, plans are under review to differentiate interest rates based on local market conditions. The ministry intends to expand the system to exempt mid-term repayment fees for the DidiMdol loans under early repayment by December this year.
To support victims of jeonse fraud, the ministry plans to begin purchasing 7,500 units of victimized dwellings per year, allowing them to reside free of charge for up to 10 years using the auction profits. The ministry noted that it is requesting courts to expedite the auction process to increase the speed of acquiring victimized dwellings.