Eliminating 'Marriage Penalties' and Offering Low-Interest Housing Loans up to 400 Million Won for Youths

[Anchor]

The government has addressed the so-called "marriage penalty," where couples experienced disadvantages in various government policies simply by registering their marriage. Moving forward, authorities will either check only a single individual's income without combining a couple's earnings or raise income thresholds to double those for unmarried individuals. Additionally, the government has decided to provide low-interest loans for young adults purchasing non-apartment housing units priced at 400 million won or less.

Reporter Min Gyeongho has the details.

[Reporter]

Let us imagine an engaged couple who each earn an annual income of 50 million won.

Before marriage, they were easily eligible for the Bogeumjari Loan, which has an income requirement of 70 million won or less for individuals.

However, the moment they get married, that eligibility disappears.

This was because newlywed couples could only use the Bogeumjari Loan if their combined income did not exceed 85 million won.

This sparked criticism, with people asking whether getting married actually acts as a penalty and whether the government is discouraging marriage while expressing concern over the declining birth rate.

Starting in October, the rules will change so that couples remain eligible as long as the income of at least one spouse is 70 million won or less.

A new "Youth Future Bogeumjari Loan" will also be introduced.

Under this scheme, young adults aged 39 or younger with an annual income of 70 million won or less who purchase non-apartment housing units priced at 400 million won or less will receive preferential interest rates, allowing them to borrow up to 80 percent of the property's value.

Similarly, for newlywed couples, only one partner needs to meet the income requirement.

Financial authorities cited an example where a borrower takes out a loan of 200 million won at an interest rate of around 3 percent.

They explained that in this case, the monthly principal and interest payments would amount to 85 million won (Note: 850,000 won), making it possible to live in a purchased home for the equivalent cost of monthly rent.

While some pointed out that apartments are excluded from the purchase scope, the government explained that the product is designed to serve as a stepping stone for young people to buy their first homes, targeting properties such as officetels.

It was also added that purchasing a home through this product will not strip buyers of their "first-time homebuyer" benefits.

The government additionally announced that starting in the second half of this year, it will raise income requirements for newlyweds regarding housing subscriptions, loans, and public rental housing occupancy to roughly double those for unmarried individuals. Furthermore, even if households exceed income or other criteria due to marriage after moving in, they will not be forced to evacuate immediately and will be permitted to renew their contracts once.

Standardized public rental housing units with upgraded interiors located near subway station areas will also be built. While the basic residency period is set at six years, extensions will be granted for each child born, allowing residents to live there for up to 20 years.

(Video by Kim Jong-mi | Graphics by Kim Ye-ji)

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