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Government Subsidiary Fund up to 70 Percent of Rent

Posted August. 21, 2001 09:06,   


Government has decided to provide 100 thousand of subsidiary houses (under 18 pyong), twice of its original plan. For this, 4 trillion and 254.1 billion Won from people`s housing fund and government fund will be provided. 1.05 milion pyong of land will be also provided.

Besides this, the law regulating financial aid for people who make their first purchase of the house under 18 pyong will be changed; so purchasers of up to 25.7 pyong house will receive the financial aid.

The Ministry of Construction and Transportation said that they had a meeting to make a counter-plan for the rapid uprising of rent, announcing ``the plan for 200 thousands of government subsidiary houses construction and financial aid for rent.``

The Ministry changed their original plan of constructing 100 thousands of house that President Kim said in his celebration address for 8.15 liberation day; thus, by 2003, 200 thousand of government subsidiary houses will be constructed.

For this plan, the ministry will approve the housing construction like following: 25 thousands of houses in 2001, 52.5thousand of houses in 2002, and 90 thousand of homes in 2003. Also, government approved the construction plan for 32.5 thousand of houses

As far as the financial resource is concerned, 4 trillion and 161.3 billion won. 1 trillion and 760 billion won from government fund in next year and 2 trillion and 494.1 billion won from people`s housing fund in 2003 will be additionally provided.

Besides 1.49 million pyong of land that are already secured, 1.05 million pyong of land will be additionally provided for the construction of 167.5thousand of houses, and the housing construction will take around three years (2001~2003).

The Ministry of Construction and Transportation also announced that they will increase the financial aid for manual workers without home and low income people; the current financial aid of `50 percent of the rent under 50 million won` will be increased up to `70 percent of the rent under 60 million won`.

Accordingly, the number of small housing will be increased rapidly; however, there are concerns that the goal of government budget of 2003 will may not be able to be kept stable because of the enormous amount of the money planned to be spent in a short period.

Koo Ja-Ryong bonhong@donga.com