Low income housing policies in Korea Evaluations and suggestions

In this paper, current housing conditions of low income households as well as institutional arrangements for low income housing policies are carefully analyzed. Also, current housing policies for low income households in Korea are systematically evaluated and suggestions are made for future directions of policy changes. For several decades, direct provision of public rental housing has been the main vehicle of low income housing policies in Korea for which favorable treatments are provided in terms of land acquisition, long-term below-market-rate financing, and tax deductions and exemptions. There has been a steady increase in the volume of Chonsei deposit loans for low income households from the National Housing Fund. In 2003, the volume of the loans was about 12 times larger than that in 1996. Also, with the enactment of National Basic Livelihood Security Act in 1999, a housing benefits program was newly introduced in which housing benefits are made based on the number of household members.