"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, experts have pointed out the need to revise the entities responsible for implementing these policies, as well as the content and procedures of the support provided. In particular, while the existing loan-based support measures have helped some young people with income to build assets, significant side effects have also emerged. Therefore, it has been suggested that, like in advanced countries, housing should be approached as a basic right.

Jung Kisung, a senior researcher at the Land and Housing Institute under Korea Land & Housing Corporation (LH), and other researchers presented these findings in a recently released report, "Research on the Direction of Youth Housing Policy Development through Comparative Analysis of Overseas Cases." The report analyzes past youth-oriented housing support policies in Korea and compares the characteristics of youth housing policies in 10 OECD countries, highlighting areas for potential benchmarking.

Senior researcher Jung evaluated that Korea’s youth housing policy has become more sophisticated, with the central government handling public housing supply and financial systems, and local governments responsible for rent reduction and other measures. However, he pointed out that the so-called "third sector," such as cooperatives and non-profit organizations, is lacking compared to major advanced countries. He proposed that expanding social housing could help play a role in adjusting rental prices.

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 differences in the philosophy and methods behind youth housing policy support. In particular, financial support in the form of loans is actively provided when purchasing a home or facing a shortage of jeonse (lump-sum lease) funds. While such measures help income-earning individuals accumulate assets, this debt-based support is vulnerable to market volatility. Starting out with debt from the beginning of their careers slows down long-term economic independence and, paradoxically, the increased liquidity in the market can drive up home prices and rents.

Most victims of recent jeonse fraud cases have been young people with little social experience. Because loan-based support assumes repayment ability, vulnerable groups in urgent need of housing assistance, such as unemployed or low-income youth, are frequently excluded. The report explains, "In many European countries, housing cost subsidies or housing allowances are more common than loans," and adds, "These serve as a preventive social safety net to keep young people from falling into poverty. Although Korea has a housing allowance system, its influence and coverage are limited."

The report suggested that, similar to Finland's "Housing First" policy, housing issues should be approached as a "basic right" rather than a "reward for those who are prepared." The system, which aims to eliminate youth homelessness among vulnerable groups, has become a successful model by combining housing with medical, 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, because Korea's youth housing policy is designed in conjunction with population policies such as low birth rates, there are blind spots where support is desperately needed—for example, low-income single youth and young people preparing for independence. It emphasized the need for a support model that combines hardware-based measures, such as providing public rental housing or offering loans at low rates, with software-based support, such as job assistance and mental health services.

Another issue raised was the current system in which young people in need of support must individually search for and apply to policies that fit their situation. The report stated, "The application-based system involves complicated income and asset verification documents, and bureaucratic silos between departments can result in eligible individuals missing out on benefits because they are unaware of the programs. For example, the French Family Allowance Fund (CAF) offers a one-stop system where applicants can enter their income information on a single website to automatically calculate and apply for housing benefits. Australia and Sweden also have interconnected systems linking their tax authorities and social security databases."

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