New Home Subscription System to Come in April

A new system of comprehensive subscription account in which a subscriber can apply for all kinds of housing will set sail in April.

Under the existing system, a subscriber can only apply for a house built by the public sector with a supply space of under 85 square meters. The new system, however, will allow a subscriber to freely choose housing style between those of the public and private sectors.

The Land, Transportation and Maritime Affairs Ministry said yesterday it will implement a new amendment today on housing supply based on the introduction of the new system.

The ministry said it seeks to offer more opportunities to apply for housing units for people according to demand.

Under the existing system, only those who have not owned a home are eligible to apply for a subscription deposit, and only those age 20 and older for subscription and subscription installment savings.

The new system, however, has no restriction regardless of ownership and age. Subscribers can deposit between 20,000 and 500,000 won monthly for the subscription and apply for a house built by the private sector after saving a certain amount of money.

To prevent existing subscription account holders from suffering disadvantages, the monthly savings will be recognized up to 100,000 won for new subscribers who apply for a house built by the public sector with a supply space of less than 85 square meters.

jefflee@donga.com