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S. Korea introduces new measures to help secure property for non-homeowners: Finance minister Updated: 2020-10-28 10:10:38 KST

The government will prioritize securing houses for people who don't own their own home, particularly newly-married couples not yet on the property ladder.
This is according to South Korea's Finance Minister Hong Nam-ki Wednesday as he spoke at a ministerial meeting related to the real estate market.
Under the government's new plan, buyers can pay a deposit of just 20 to 25 percent of the property's value and pay the rest off over the years.
The tenants can equally divide repayments into 10 to 15 percent chunks every four years, so the tenant eventually owns the property outright within 20 to 30 years.
The rent payments will also be set at a lower level than the market price.
These housing units will be available to non-homeowners in their 30s and 40s, and newly married couples.

"We believe the new plan will mitigate the initial burden on ordinary people who dream of buying a house, but lack the financial means to do so."

The government plans to gradually apply this new measure to new housing sites, possibly from 2023.
The minister also said the South Korean government is looking to change the way it assesses the value of real estate, so it can charge higher property taxes.
Under the plan, by 2030, the government will assess property at either 80, 90 or a hundred percent of its market value.
The current rates are 65-and-a-half percent for land and 69 percent for homes.
However, the government hopes to prevent the revised property tax negatively affecting low to middle income people who own one low or mid-priced home.
The minister said household debt has continued to grow since the outbreak of COVID-19, but the pace is expected to slow in October.
He pledged the government will continue to closely monitor related trends so household debt does not become a risk factor for the economy.
Kim Jae-hee, Arirang News.
Reporter : jhee@arirang.com
KOGL : Korea Open Government License
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