Removing 'Marriage Penalty' and Providing Low-Interest Loans for Young Adults Buying Homes Priced Under 400 Million Won

[Anchor]

The so-called "marriage penalty," where registering a marriage leads to disadvantages in various government policies, has been addressed. The government has decided not to combine spouses' incomes in certain cases, checking only one person's income instead, or to double the income threshold compared to that for single individuals. In addition, young adults will be provided with low-interest loans when purchasing homes priced under 400 million won, rather than apartments.

Reporter Min Gyeongho has the details.

[Reporter]

Let us suppose there is an engaged couple, each with an annual income of 50 million won.

Before getting married, they were naturally eligible to use the Bogeumjari Loan, which has an income requirement of 70 million won or less.

However, the moment they get married, it becomes impossible.

This is because newlywed couples had to have a combined income of 85 million won or less to use the Bogeumjari Loan.

This sparked criticism, with people asking whether getting married is actually a penalty, and whether the government is discouraging marriage while worrying about the low birth rate.

Starting next October, the rules will change so that couples can qualify if the income of just one spouse is 70 million won or less.

A new Youth Future Bogeumjari Loan will also be established.

Under this scheme, young adults aged 39 or younger with an annual income of 70 million won or less will be able to borrow up to 80 percent of the property value at preferential interest rates when purchasing homes priced at 400 million won or less, excluding apartments.

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

Financial authorities gave an example of borrowing 200 million won at an interest rate of around 3 percent.

In this case, borrowers would repay 850,000 won in principal and interest each month, which the authorities explained means people will be able to live in their own homes at a cost comparable to monthly rent.

Some pointed out that apartments cannot be purchased with this loan, but the government explained that the product was designed with officetels and other housing types in mind, as its core purpose is to serve as a stepping stone for young adults to buy their first homes.

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

The government also announced that starting in the second half of this year, it will raise the income thresholds for newlyweds regarding housing subscriptions, loans, and public rental housing admissions to about twice the level for single individuals. Furthermore, even if households exceed the income criteria due to marriage after moving in, they will not be immediately evicted and will be allowed to renew their contracts once.

Universal public rental housing with high-end interior finishes will also be built in station-adjacent areas. While the basic residency period is 6 years, extensions will be granted for each child born, allowing residents to live there for up to 20 years.

(Video Editing: Kim Jong-mi, Design: Kim Yeji)
※ Please note: This article was translated by AI and may contain errors.