Pohang offers 1000-won homes youth newlyweds
Pohang is introducing ultra-low-rent homes for young adults and newlyweds that will charge just 30,000 won ($22) per month, or about 1,000 won a day, earning them the nickname “1,000-won homes.”
This marks the first time a local government in Korea is implementing such a program. The initiative is aimed at tackling urban hollowing, a growing concern for cities like Pohang that are experiencing population loss due to aging demographics, shrinking household sizes and a steady outflow of young people to the capital region in search of better jobs, education and cultural opportunities.
Pohang, in particular, has been hit hard by the prolonged downturn in the steel industry. Government data show that the city’s population dropped from approximately 519,600 in 2015 to 502,900 in 2020 and fell below the 500,000 mark in 2022. As of last month, Pohang’s population stood at 489,657.
To reverse the trend, Pohang will offer the discounted homes by subleasing rental units owned by the state-run Korea Land and Housing Corporation. The program targets unmarried or newly married individuals between the ages of 19 and 45 who do not own a home. Eligible tenants will pay just 30,000 won per month for units sized between 46 and 53 square meters (495 and 570 square feet), with the city covering 140,000 won of the typical monthly rent of 170,000 won.
Support will be offered for a minimum of two years and a maximum of four years. The city plans to begin with 100 units this year and gradually expand the program to 500 homes over five years. Applications will be accepted in person at Pohang City Hall from Oct. 16 to 17, with the selected applicants announced on Oct. 20.
The broader plan includes a total of 3,500 customized public housing units by 2030. The first phase targets 500 homes for young people and newlyweds. The second will expand to 1,800 homes for newlyweds, multi-child families and workers. The third will focus on 1,200 homes for large families and senior citizens.
The city hopes the reduced cost of settling in will attract more young residents. Last year, 50 percent of tenants selected for a similar program came from outside the city.
Pohang will also expand housing support policies. One-person youth households will be eligible for up to 400,000 won in moving costs and real estate agent fees. The city will also offer up to 400,000 won in support for minor home repairs and a clean house program, and will launch 15 additional public-private home improvement projects.
“We aim to create a secure housing environment for young people and newlyweds so that all citizens can feel proud of life in Pohang,” said Pohang Mayor Lee Kang-deok. “We’re committed to taking the lead in restoring the competitiveness of the regional steel industry.”