Shared Equity Homeownership in Korea: Analysis of the First Public Programs

Abstract

Korea's public housing policy has reached a turning point, with an emphasis on alternative housing tenure types. Based on the notion of intermediate housing, three homeownership programs—land-lease housing for sale, profit-sharing housing for sale, and accumulated equity housing for sale—have been introduced. The high competition rates shown in these recent projects have proven the demand for these new intermediate or transitional homeownership programs. However, to avoid further trial and error, there is a need for rich discussions on what should be the founding principles and methods of implementation of these new homeownership programs.

This study analyzes Korea's new homeownership programs based on the shared equity homeownership (SEH) models. To provide grounds for the evaluation, multiple literature and statistical data were explored. In turn, the principles and methodologies of the SEH models were derived, and the three homeownership programs were explained including their history and individual projects. As a result of the analysis, it was difficult to conclude that the three homeownership programs have adopted the principles and methodologies of the SEH models. To sustain the supply of affordable housing and to improve the lives of the homeowners who live within them, lessons from the SEH models should be taken into account.