The asset criterion for evaluating the eligibility for public housing, known as "automobile value," will be actualized. Previously, one could not own a vehicle valued at more than 38 million won to rent or purchase public housing, but this threshold is expected to rise to around 45 million won.
This decision comes as the eligibility for public housing is being expanded beyond vulnerable groups to include newlyweds and families with newborns, raising the need to increase the automobile value. Criticism that residents of public housing are unable to purchase eco-friendly electric vehicles has also influenced this increase in automobile value.
According to the Ministry of Land, Infrastructure and Transport and local governments on the 10th, the Ministry is currently soliciting opinions from relevant agencies on improving the automobile value criterion among the assets owned by public housing residents. To move into public housing, one must meet both income and asset criteria, which includes the automobile value. A Ministry official noted, "The aim is to actualize the automobile value used as the criterion," adding, "The consultation will take two to three months."
The expected increase in the automobile value is between 7 million and 8 million won. The automobile value is calculated by multiplying the automobile value set by the Minister of Land, Infrastructure and Transport by the price index published by the Statistics Korea, according to the "guidelines for processing assets of public housing residents." The Ministry is reviewing a plan to raise the automobile value standard set by the Minister to between 42 million and 43 million won. The current standard is 35 million won. The last increase was from 25 million won to 26 million won in 2021.
A source familiar with the government stated, "The current automobile value standard that the Ministry is consulting is between 42 million and 43 million won," and added, "Since this is at the consultation stage, changes may occur."
If the automobile value criterion is raised, the final automobile value multiplied by the price index is expected to be around 45 million won. Currently, the automobile value to enter public housing is set at 37.08 million won based on sale housing. For public rental housing, the automobile value must be less than 38.03 million won, while the upper limit is 37.08 million won for long-term lease. However, for families with newborns, this criterion is relaxed, allowing the automobile value to be expanded to 44.49 million won.
The Ministry's initiative to actualize the automobile value stems from continuous criticism that the current standard does not reflect the recent spread of electric and other eco-friendly vehicles. The government is encouraging electric vehicles by providing purchase subsidies and expanding electric vehicle-related facilities in public housing, but residents are unable to purchase electric vehicles due to the vehicle value criterion.
The Korea Land and Housing Corporation pointed out in a report three years ago, "If we respect that automobiles are essential tools for livelihood and enjoying life in Korean society, then the automobile value criterion can be seen as outdated," adding, "Separate assessments for automobiles, aside from the review of total assets, disregard the needs and preferences of vulnerable groups regarding their assets."
The diversification of public housing utilization targets is another reason the Ministry is amending the automobile value criterion. Recently, public housing has been expanded to include not only low-income vulnerable groups but also newlyweds and families with newborns. However, since the vehicle value criterion is low despite changes in family structures, such as childbirth, there are cases where it is difficult to purchase suitable vehicles.
A local government official stated, "The target users of public housing have expanded to include income-earning newlyweds and families with newborns, but there are cases where they are unable to access it due to the vehicle value," and noted, "There are people who need a vehicle for business purposes, but due to the vehicle value, it is difficult to use public housing, which seems to indicate an intention to actualize the automobile value."
With the increase in automobile value, it is expected that the requirements for entering public housing will be relaxed, providing more opportunities for public housing residents to ensure housing stability.
However, there are concerns that management and supervision of high-priced vehicles, which do not align with the purpose of providing public housing for the stabilization of low-income residents, need to be strengthened.