This study aims to analyze the characteristics and problems of housing finance, and seeks improvement plans for the housing finance system.
In the 1980s, the public’s demand for housing services has risen with increased income from rapid economic growth. The demand for improvement in the low income housing environment reflects the changes in the overall social value structure, and this has become the main contemporary issue of welfare. Therefore, the direction of housing policy should be balanced with the economic development policy, and policy should reflect public’s increased desire for housing.
In order to achieve this, the basic objective of housing policy should be to increase housing supply, and to reduce the housing quality gap between higher and lower income groups by improving the lower income group’s housing. Furthermore, housing finance institutions should set up stable and long-term financing systems, and the government should contribute more to housing finance by expanding government funding size. Additionally, the government should develop ways to link the public social welfare pension system, currently in planning, with housing finance.
To facilitate the supply of housing finance, the Housing Bank, a specialized institution for housing finance, should be expanded by increasing the bank’s asset size to the level of other specialized banks, and minimize non-housing loans by reducing policy loans in the short term. In the long term, the Housing Bank should be restructured as a private bank that specializes in housing finance.
In Korea, where there is a short in housing supply, the supply and demand of housing cannot be dependent upon free market institutions, and government intervention is required. The government should control the support target and scope of public housing funds and private housing funds: the public housing fund that is more low-income-group oriented and has low funding costs should target the lowest income group with small and low-cost housing; and the private housing fund should target medium sized housing within the free market system.
In order to finance housing funds, and to stabilize funding and to prevent freezing of housing finance institutions, it is necessary to liquidate housing loan bonds. At first, it is necessary to issue and distribute new housing bonds that indirectly liquidate the housing loan bonds, and at the same time, introduce the home mortgage market.
주택금융의 환경변화와 주택금융전문기관의 역할(Changes In housing finance environment and the role of specialized institutions for housing finance)
|Series Title; No||정책연구시리즈 / 87-05|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < General|
|Holding||KDI; KDI School|