Busan, South Korea – In a bid to reverse the alarming decline in its youth population, the city of Busan has announced a groundbreaking housing initiative that includes providing free housing to young adults and newlyweds.
Busan Mayor Park Hyung-jun unveiled the "Busan Housing Comprehensive Plan (2032)" on Tuesday, promising to supply 10,000 units of "zero-rent" public housing to young adults and newlyweds by 2030.
"Young people will receive a basic six-year lease, while newlyweds will receive seven years. The lease can be extended to 20 years for families with one child and for life for those with two or more children," Mayor Park said, calling it an "unprecedented housing policy."
To achieve this ambitious goal, the city plans to build at least 7,000 units of public housing in five designated areas, including Daejeo Public Housing Complex, Centum 2 District Urban Advanced Industrial Complex, and Miji International New City.
Additionally, Busan will revitalize the "Hope Plus Housing" program, which offers affordable private rental housing in transit-oriented commercial areas to young people for a 10-year period. The city aims to create 4,000 units through this program.
To address the specific needs of single-person households, Busan will collaborate with the Busan Urban Corporation to develop new housing models. Furthermore, the city plans to improve the design of public housing to dispel negative stereotypes.
To support those affected by rental scams, Busan will provide full interest subsidies for tenant protection loans. The city will also offer financial assistance to low-income families with children to improve their living conditions.
In addition to these initiatives, the city will redevelop 21 aging public housing complexes and five pilot projects. To cater to the needs of the aging population, Busan will create a "1 million-pyeong active senior town" in Haeundae and other districts, offering healthcare services and amenities.
Busan has seen a significant decline in its youth population in recent years, with the proportion of young people aged 15-29 dropping from 6.69% in 2014 to 5.95% in 2023. This decline is the steepest among all South Korean cities.
By offering free housing and other supportive measures, Busan aims to attract and retain young people, reverse the trend of population decline, and revitalize the city.
[Copyright (c) Global Economic Times. All Rights Reserved.]
