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The government is pushing for a plan to significantly expand the "Youth Monthly Rent Support Project" to reduce the burden of housing expenses for young people. It is considering ways to significantly ease the income requirements from the current "standard median income of 60% or less" to "100% or less" to expand the number of beneficiaries and raise the amount of support to compensate for actual housing expenses.

According to related ministries on the 13th, the Ministry of Strategy and Budget and the Ministry of Land, Infrastructure and Transport have set the stage for expanding the financial investment of the youth monthly rent support project in the process of drawing up next year's budget. Specific support standards are being adjusted based on the interim results of research services that analyze the number of beneficiaries and additional financial needs due to the relaxation of income standards.

The monthly rent support for young people is a Ministry of Land, Infrastructure and Transport project that provides monthly rent to low-income young people living separately from their parents. Young people aged 19-34 who live independently of low-income families are eligible. It will provide up to 200,000 won per month for 24 months in the range of rent paid. The maximum amount of support is 4.8 million won. It was introduced as a temporary project in 2022, but it continued to be a business from this year.

The government's first consideration is to ease the youth's income standard to 100 percent of the median income.

The current youth's own income must be less than 60% of the standard median income, and the income of parents (original households) living separately must be less than 100% of the standard median income. As of now, it is pointed out that the monthly income of young people as of next year must be less than KRW 1,641,625 to receive support, but it is less than KRW 2,236,300 per month applied with the minimum wage.

If the target is expanded, it will include young people who earn 2.73 million won in median income based on single-person households next year. However, if you have a lot of assets or if your parents' income is above a certain level, you will be excluded from the support.

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A plan to raise the maximum monthly support from the current 200,000 won is being discussed.

According to the government, the average monthly rent for non-apartments is about 800,000 won, and it is pointed out that the current support alone has limitations in easing the actual housing cost burden. The increase in subsidies was discussed at the National Assembly during the review of the supplementary budget in April, but it was not finally reflected.

At that time, the National Assembly's Land, Infrastructure and Transport Committee suggested that 65 billion won should be increased to raise the monthly support from 200,000 won to 300,000 won.

In response, Deputy Minister of Land, Infrastructure and Transport Kim Yi-tak put more weight on expanding the target by easing income standards rather than raising the amount of support. Vice Minister Kim said at the meeting at the time, "If the income standard is relaxed to 100% of the median income, the target will be wider, so the effect will be greater," adding, "If so, the budget for the increase will be KRW 52.6 billion."

If both monthly rent support targets and amounts are expanded, additional financial costs are expected to exceed 100 billion won. The budget for youth monthly rent support this year is about 130 billion won, and some predict that it could exceed 200 billion won next year.

The Ministry of Strategy and Finance's financial project evaluation team also evaluated the youth monthly rent support project as a "normal promotion" in the integrated financial project evaluation in May and recommended an increase. However, the final amount required may vary depending on the income standard and the level of support to be expanded.

Earlier, the government increased the monthly tax credit rate for young people through a tax reform plan. However, the need to expand direct financial support has been raised due to the limitation that it is difficult for low-income young people with low taxes to pay to fully enjoy tax credit benefits.