(1) Reasons for Proposal

Over-subscription to housing is an emerging phenomenon in certain areas like Seoul while houses in provincial areas are failing to sell. This polarization of the subscription market has created a need to ensure a stable market operation by recruiting residents in a transparent manner in preparation for uncontracted houses in high-speculation and high-subscription areas and unsold houses in other regions.

According to a recent examination of the current state of the subscriptions of successful subscribers in highly-speculatvie areas in the Seoul Metropolitan Area, there have been a number of suspected illegal acts including false address registrations and subscription account sales. Accordingly, the Amendment prescribes procedures for re-supplying houses for which the supply contract is canceled upon confirmation that the relevant applicant has disturbed the order of housing supply, and also addresses other weaknesses that have emerged from the operation process to improve convenience for actual occupants and project operators.

(2) Major Provisions

A. Grant the spouses of household members eligibility for subscription to a special supply for newlywed couples and multi-child households (Article 2, subparagraphs 3, 3-2, 3-3, and 4)

1) Prescribe that the head of a household shall simply be the head of the household specified in the resident registration card for the household concerned; and include the spouses of household members in the scope of household members (sons- and daughters-in-law, etc.) and grant them eligibility for subscription

2) Prescribe uniform provisions for the members of a household as different provisions apply to non-homeowning household amembers (national housing, special supply) and persons belonging to a household (private housing)

B. Exclude persons with ownership or the right to purchase ownership from the scope of non-homeowners (Article 2, subparagraph 3-3; Article 28, paragraph 1; Article 53)

Prescribe that any person who has the status of a person selected to receive transfer of housing or to be an occupant of housing pursuant to Article 3, paragraph 1, subparagraph 3 of the Act on Report on Real Estate Transactions, etc., (including cases where such rights have been acquired by purchase) shall not be regarded as a non-homeowner

C. Exclude minors from the scope of eligibility for housing supply (Article 4, paragraph 1, subparagraphs 1 and 2; Article 26, paragraph 5)

Amend the current provision that any minor who is the head of a household is included in the scope of adults, such that a minor shall be included in the scope of adults only if he or she is the head of a household and must provide for his or her siblings due to the death, declared disappearance, or disappearance, etc. of lineal ascendants

D. Allow advance applications for uncontracted and unsold houses to be submitted online (Article 19, paragraph 5)

1) Allow online submission of advance supply applications for uncontracted and unsold houses after the public notice of resident recruitment

2) Allow online submission of supply applications that are submitted after entering into  contract with a successful subscriber when there are 20 or more (or less than 20 if deemed necessary by the head of the local government) unsold houses in a high-speculation or high-subscription area

E. Give priority to non-homeowners when selecting residents by ballot (Article 28, paragraph 8)

1) Where residents for private housing are selected by ballot, require non-homeowners to be given priority and the remaining houses to be supplied to homeowners

2) Include owners of a single home in the high-priority group on condition that their current house will be sold and, where this condition is not met, enforce penalties applicable to offenses under Article 54, paragraph 2 and Article 65, paragraph 1 of the Act

F. Clarify residence requirements for special supply based on institution recommendations (Article 35, paragraph 1; Article 36, paragraph 1)

Notwithstanding the provisions stating that “priority shall be given to residents of the housing construction area concerned, persons who have resided in a high-speculation area for at least 1 year, and, in the event of competition within priority brackets, residents of the housing construction area concerned,” prescribe that housing shall be supplied to residents of the area concerned in accordance with the priority order specified by the institution concerned

G. Exclude newlywed couples who have sold a house from the scope of eligibility for special supply (Article 41)

Exclude newlywed couples who have owned a house after the date of marriage registration from the scope of eligibility for special supply even if they are non-homeowning household members as of the date of the public notice of resident recruitment

H. Prescribe re-supply procedures for houses for which the contract has been canceled due to illegal acts (Article 47-3)

1) Follow standard subscription procedures if there are 30 or more houses for which the contract has been canceled. If there are 20 or more but fewer than 30 such houses, supply the houses by ballot to non-homeowners residing in the area concerned

2) Allow persons authorized to approve resident recruitment to form a group and supply on a quarterly basis houses with canceled contracts from various housing complexes within the area of jurisdiction (including cases where there are fewer than 20 such houses)

I. Relax restrictions on subscription eligibility for unqualified persons (Article 58)

Maintain the current 1-year restricted subscription eligibility for the Seoul Metropolitan Area, high-speculation areas, and high-subscription areas. Relax the period of restricted subscription eligibility to 3 months for declining areas and 6 months for other regions outside the Seoul Metropolitan Area