President-elect Yoon Suk-yeol's 2022 Election Promises for Young Adult
Will the promised housing plan and Youth Leap Account be the hope for young adults?
Cub-reporter Kim Han-deul
sswante88@naver.com
First, with regards to the housing plan for young adults, President-elect Yoon Suk-yeol has promised to supply young adults with three million houses at a low cost price and 250,000 houses that are located in areas adjacent to the subway stations. As of now, due to surreal price rises, housing problems among young adults and newlyweds are severe, especially in the capital. It is estimated that there will be 178,000 homeless households in the 2030 generation. However, current government's support centers on renting houses, so there needs to be a more efficient policy for a housing settlement for young adults. Most young adults and newlyweds hope to live in city areas that are close to transportation links. As a result, building a new city or developing rural areas is not enough to fulfill the demand.
President-elect Yoon Suk-yeol will supply public housing at construction cost. People will pay 20% of the parcel price and repay the principal and interest in the long run. After the first occupant has resided in the property for over five years and wants to sell it, it should be sold to the government and the government will guarantee 70% of the profit margin.
How will this be executed? President-elect Yoon's government will make a road map of housing supply as soon as the new government takes office. They will improve policy and will enforce a presidential order which needs to be corrected to make his housing plan come to life. How will this housing plan be financed? The new government will finance the plan by adjusting the finance cost structure and delivering private investment.
President-elect Yoon plans to build the following different forms of houses for young adults; Reconstruction and redevelopment of 470,000 houses (35,000 houses in the metropolitan area), 200,000 houses in the city and in districts with stations (130,000 houses in the metropolitan area), national/public land and vehicle depot complex development of 180,000 houses (140,000houses in the metropolitan area), 100,000 small scale maintenance business houses (65,000 houses in the metropolitan area), and 140,000 public land houses (74,000 houses in the metropolitan area).
Second, The Youth Leap Account is for workers or people with business incomes who are aged 19~34 years old (in international age, people who were born between 1987~2003). As a member of The Youth Leap Account, after ten years one could have saved 100,000,000KRW. Youth Leap Account members will save up to 700,000KRW a month within limits. For Youth Savings Account, how much money will the member or government contribute? The Korean government will deposit 100,000~400,000KRW monthly according to the member's income. As of yet, there is not a maximum yearly wage limit. For those who earn 48,000,000KRW or more annually there will be tax exemptions, including an income tax exemption. Members will be able to choose from three different investment management types; stocks, bonds, or savings.
There are several questions that remain unanswered. First, where will President-elect Yoon Suk-yeol get government funding from? Second, President-elect Yoon Suk-yeol's term of office ends in five years - his last day in office will be on 9 May 2027 - so how will the government guarantee that the Youth Leap Account policy will continue if it is expected to last ten years? Third, what are the promises for other groups? The middle-aged and elderly claim that they pay a lot of taxes but on the other hand do not get as much financial support or benefits from the government as young adults. Fourth, the application conditions are defined by age, not income. Overall, it is a promise for young adults so the benefit will be gained for young adults. Let's see if President-elect Yoon Suk-yeol can successfully implement this policy for young adults.