Youth Housing Dream Account: Proposed KRW 70M Income Cap

The Youth Housing Dream Subscription Account is a housing subscription savings account for young people who do not own a home. A plan has been announced to raise the income limit for opening an account to at most KRW 70 million a year. Before opening an account, check whether the relaxed criteria have taken effect.

The proposed changes are based on the Ministry of Land, Infrastructure and Transport's notice dated October 15, 2026.

When does the KRW 70 million income limit take effect?

The official announcement reviewed describes a plan to relax the income criteria. The Ministry of Land, Infrastructure and Transport said it would amend the relevant notice during October 2026. Its October 15 notice also states:

The income limit for opening an account is scheduled to increase to at most KRW 70 million.

This wording appears in the Ministry of Land, Infrastructure and Transport's “Can I Open a Youth Housing Dream Subscription Account Too?”

This wording alone does not establish the actual effective date. The Housing and Urban Fund's product guide dated June 30, 2026, still lists the existing criteria. If your annual income is more than KRW 50 million, ask the bank when the new criteria begin to apply.

The document to check is the “Notice on Interest Rates and Operation of Comprehensive Housing Subscription Savings.” You can check the latest version in effect at the Korean Law Information Center. Also ask the bank whether your income documentation qualifies you to open an account.

Eligibility and how income is verified

The basic eligibility requirements are to be aged 19 to 34 and not own a home. Income is verified through supporting documents. The homeownership requirement for opening the account applies to the account holder personally.

Income is verified using tax filings from the previous year or the year before that. The applicable year depends on factors such as when income documents become available. Do not judge your eligibility based only on this year's salary.

New employees with a short employment history may use alternative supporting documents. Eligibility exceptions also exist for military personnel and others whose only income is tax-exempt. If this applies to you, check the required documents with the bank first.

How does the maximum annual interest rate of 4.5% apply?

The maximum annual rate of 4.5% is a pre-tax rate available when conditions such as the required account holding period are met. The maximum difference from a regular account is 1.4 percentage points. The same rate does not apply to all deposits from the outset.

The following is based on the Housing and Urban Fund's product guide dated June 30, 2026.

The preferential interest rate applies to deposited principal up to KRW 50 million. The applicable period is determined by how long you have not owned a home. Principal transferred from a regular account is excluded from the preferential rate.

If you close the account after being selected for a housing allocation, an exception allows the preferential rate to apply even after less than 2 years. Interest rates may change under government notices. Actual interest is calculated based on how long each deposit has been held.

Comparing income deduction and tax exemption requirements

Even if you qualify to open an account, eligibility for tax benefits is assessed separately. An income deduction reduces the income used to calculate tax. A tax exemption means that qualifying interest is not taxed.

The information below is based on Shinhan Bank's product disclosure applicable in 2026.

If you have multiple types of income, also check the detailed exclusions from the tax exemption. Relaxing the income criteria for opening an account does not change the tax exemption criteria. You can also ask the bank whether your tax benefit application documents have been received.

Income deduction calculation example

If you meet the deduction requirements and contribute KRW 3 million a year, your deduction is KRW 1.2 million. This is calculated as KRW 3 million × 40%. This amount is subtracted from your taxable income.

This does not mean you receive a refund of KRW 1.2 million. If your annual contributions are below the cap, the calculation uses the amount actually contributed. Even if contributions exceed KRW 3 million, the cap applies when calculating the deduction.

Youth Housing Dream Didimdol Loan requirements

The linked loan provides home purchase financing for people selected for a housing allocation through this account. Opening an account alone does not guarantee loan approval. Income criteria and loan limits also differ for unmarried applicants and newlywed households.

The Seoul Metropolitan Government's Cheongnyeon Mongttang Jeongbotong program guide describes the following requirements.

• You must be selected using a Youth Housing Dream account held before the housing recruitment announcement date.
• You must be aged at most 39 when selected for a housing allocation.
• At least 1 year must have passed between the account opening or conversion date and the loan application date.
• Recognized contributions must total at least KRW 10 million as of the loan application date.
• All household members, including the household head, must not own a home.

Hana Bank's interest rate table dated April 18, 2025, lists annual rates of 2.40% to 4.15%. The annual rate of 2.40% applies to the 10-year term bracket for annual income of at most KRW 20 million. Adjustments based on region, interest rate type, and preferential conditions are separate.

The advertised maximum of KRW 400 million refers to the limit for newlywed households. The actual approved amount is subject to limits based on collateral value, repayment capacity, and other factors. Check the interest rates and asset criteria in effect when you apply with the participating bank. (Verified figures: annual interest rate of 2.40% to 4.15%, as of April 18, 2025; net assets of at most KRW 511 million · Source: hanabank.com · Checked on 2026-11-03)

What kind of home can you buy?

Homes eligible for the loan are also subject to price and floor area limits. The Cheongnyeon Mongttang Jeongbotong guide sets the maximum appraised value of the property used as collateral at KRW 600 million. In principle, the exclusive residential floor area must be at most 85㎡.

A limit of at most 100㎡ applies in towns and townships outside urban areas and outside the Seoul Capital Area. Even if you are buying in Seoul, you must separately meet the home price limit. After being selected for a housing allocation, check whether that home is eligible for the loan.

How do housing subscription history and loan qualification records differ when converting an account?

The rules for carrying over housing subscription history differ from the account history requirements for the linked loan. You can convert a regular housing subscription account if you meet the eligibility requirements. Ask the bank to convert it before closing your existing account yourself.

The linked loan's account history requirements are based on the Cheongnyeon Mongttang Jeongbotong guide. If the account was converted from Youth Preferential Comprehensive Housing Subscription Savings, the entire existing balance is recognized. Check this separately from conversion of a regular Comprehensive Housing Subscription Savings account.

Even if you have held your existing account for a long time, you must recheck the qualifying account holding period for the loan. Your account balance may also differ from the contributions recognized for the loan. Ask the bank for your housing subscription history and loan qualification records separately.

Documents and steps for opening or converting an account

You can open a new account or convert a regular account at a participating bank. You will generally need identification and proof of income. Additional documents may be required depending on your military service and household relationships.

1. Check with the participating bank which income criteria apply on the account opening date.
2. Prepare identification and income documents, such as an income verification certificate for opening the account.
3. If you need military service deducted from your age, prepare a military service certificate or similar documents.
4. If you have an existing account, check whether it can be converted before closing it.
5. Check the income deduction and tax exemption applications separately.

The declaration of non-homeownership for the income deduction must be submitted by the end of February in the year after the applicable tax year. The tax exemption requires separate application documents. Asking for guidance on both account opening and tax benefit documents can help prevent omissions.

Distinguishing this account from housing support announced alongside it

Youth rent support and support for rental deposit return guarantee fees are separate programs. The Ministry of Land, Infrastructure and Transport's announcement on October 12, 2026, also mentioned expanding these programs. Opening a housing subscription account does not automatically apply you for them.

Do not apply the account's proposed relaxed annual income limit of KRW 70 million to other programs. For rent and guarantee fee support, check announcements from the responsible local government. For loans, refer to the Housing and Urban Fund's guide for the specific product.