"Youth Housing Policy: Korea Focuses on Loans, While Other Countries Offer Direct Housing Subsidies"

KRIHS Compares Domestic and International Youth Housing Policies
"Need for Diversified Housing Providers, Package Support, and a User-Centered Approach"

Although youth housing policies have improved both quantitatively and qualitatively compared to the past, there are calls to revise the governing bodies, the content of support, and the procedures involved. In particular, it has been pointed out that the existing loan-centered support policies have helped some young people with income build assets, but have also caused significant side effects. As a result, experts have suggested that, like in advanced countries, housing should be approached as a fundamental right.

Jung Kisung, Senior Researcher at the Korea Research Institute for Human Settlements under Korea Land & Housing Corporation (LH), and other authors made this argument in their recently released report, "A Study on the Development Direction of Youth Housing Policy Through Comparative Analysis of Overseas Cases." The report analyzes the youth housing support policies that have been implemented domestically to date and compares them to the characteristics of youth housing policies in 10 OECD countries, identifying areas that Korea can benchmark.

Senior Researcher Jung evaluated that Korea’s youth housing policy has become increasingly sophisticated, with the central government responsible for the supply of public housing and financial systems, and local governments handling measures such as rent reductions. However, he pointed out that, compared to major advanced countries, the so-called "third sector," such as cooperatives or nonprofit organizations, is insufficient. He suggested that expanding social housing is needed to play a role in adjusting rents.

Representatives from housing civic organizations, including the Housing Rights Network, held a press conference to present proposals on housing and real estate policies in front of the National Planning Committee in Jongno-gu, Seoul on June 17, 2025. Photo by Yongjun Cho

He also noted that there are differences in the philosophy and methods of supporting youth housing policies. In particular, when young people lack funds to purchase a home or make a lump-sum lease deposit, loan-based financial support is prevalent, which helps those with income build assets. However, he pointed out that such debt-based support policies are vulnerable to market volatility. Starting their adult lives burdened by debt not only slows their medium- and long-term economic independence, but this liquidity can also paradoxically drive up housing prices or rents.

In cases such as the recent rental deposit fraud scandals, most victims were young people with little social experience. Since loan-based policies assume the ability to repay, vulnerable groups in urgent need of housing support—such as unemployed youth or those with low incomes—are frequently excluded. The report states, "In many European countries, housing cost subsidies or housing benefits are more common than loans," and adds, "Although Korea has a housing benefit system that serves as a preventive social safety net to prevent young people from falling into poverty, its impact and coverage are limited."

The report suggested that, like Finland's "Housing First" approach, housing issues should be treated as a "basic right" rather than a "reward for those who are ready." This system, which aims to eliminate youth homelessness, is evaluated as a successful model by integrating housing with healthcare, welfare, and employment services.

A French homeless support organization’s youth housing policy program, "Unchez-soi d’abord jeunes," which means "Young Home," targets young people at risk of homelessness or housing loss due to mental health issues. Organization website

The report also pointed out that, since Korea's youth housing policies have been designed in conjunction with population policies aimed at addressing low birth rates, there could be blind spots for groups in desperate need of support, such as low-income single young adults or young people preparing for independence. It emphasized the need for a support model that combines hardware-focused measures such as providing public rental housing or low-interest loans with software-focused support, including jobs and mental health services.

The current system, in which young people seeking support must individually search for and apply to policies that suit them, was also criticized as problematic. The report explained, "The application-based system is complicated by income and asset documentation requirements, and administrative silos between government ministries create the problem of non-receipt poverty, where eligible individuals miss out on benefits simply because they are unaware of the programs." It continued, "The French Family Allowance Fund provides a one-stop system in which applicants can enter their income information on a single website and automatically calculate and apply for housing allowances, while in Australia and Sweden, tax and social security data are interconnected."

This content was produced with the assistance of AI translation services.