Government Eases Loan and Housing Eligibility for Newlyweds to Combat 'Marriage Penalty'

To address the so-called "marriage penalty," where couples face various disadvantages after registering their marriage, the government has introduced a comprehensive set of measures covering housing, assets, and taxation.

The government plans to ease income requirements for public rental housing and allow couples to renew their contracts at least once, even if their combined income or assets exceed the limits after marriage.

Eligibility for the Youth Future Savings Account will be expanded, and couples living apart will be allowed to receive income tax deductions for principal and interest repayments on jeonse (lump-sum housing lease) loans.

The Ministry of Economy and Finance announced these "Marriage-Friendly Policy Reforms" on Tuesday (June 9).

Regarding housing support, the government is easing the eligibility criteria for public rental housing.

For dual-income newlyweds, the income threshold for moving into Happy Housing will be raised from the current 7.63 million won to 9.39 million won, which is double the level for a single-person household (4.58 million won).

For integrated public rental housing, the income threshold for dual-income newlywed households will increase from 4.62 million won to 6.3 million won for priority supply, and from 7.98 million won to 9.24 million won for general supply. This is also double the level for a single-person household.

Furthermore, the government has decided to allow couples to renew their contracts at least once, even if they exceed the income and asset limits due to marriage.

To help families with children move to larger units as their children grow, the government is removing the existing age limit (under 2 years old) for eligibility in public housing.

Loan burdens will also be partially eased.

Currently, if a couple's combined income exceeds the requirements for a Beotimmok loan (a government-backed housing lease loan) after marriage, an additional interest rate is applied. Moving forward, the government plans to cut this additional interest rate by 50% regardless of the couple's combined income.

A policy to provide 10% of private housing units as special supply for households that have given birth to children under the age of 2, regardless of the 7-year marriage requirement, is also scheduled to be implemented this month.

Regarding asset formation, the income threshold for two-person households to join the Youth Future Savings Account will be raised to double that of a single-person household.

The government also plans to expand the limits for settlement subsidies and agricultural startup loans for young farming couples who manage their farms independently.

Tax burdens for married youth will also be reduced.

The government is addressing the issue where income tax deductions for jeonse loan repayments (40% of the repayment amount) are limited to only one spouse after marriage.

In the future, the government plans to allow both spouses to receive income tax deductions if they live apart due to circumstances such as working in different cities or the relocation of public institutions.

Regarding the fuel tax refund for compact cars, the current system excludes households from the refund if they own two compact cars after marriage. The government is reviewing a plan to allow refunds for one car per household even after marriage registration.
※ Please note: This article was translated by AI and may contain errors.