Home Buyers’ Synthesized Savings Account (주택청약종합저축)

South Korean government has implemented a quite unique system for the allocation of new housing units which relies on selection of residents. This system is enforced for housing projects that are composed of more than 20 units. When a developer constructs an apartment complex, the home buyers are selected even before the project is fully completed. The criteria for selection give priority to first-time buyers, bigger families and those who have owned a subscription savings account for a long time.

In 2009, the government introduced 주택청약종합저축 (jutaek cheongyak jonghap jeochuk) or Home Buyers’ Synthesized Savings Account. This savings account is available at six major Korean banks chosen by the government. It is open for all qualified individuals (Koreans and foreigners with ARC), regardless of whether they own a house or not.

The housing units are sold to the subscribers with prices above production cost but below market value. This attractive housing price in this program definitely draws the interest of all potential home buyers. Thus, a merit selection system has been implemented in choosing the buyers.

9896_3614_5833HBSSA is just like any other interest-earning savings accounts but it was created by the government to support those who are interested in saving money at higher interest rates, with the hope that the money saved in this account will be used to buy their homes. It is like a ‘ticket’ to buy a home in a cheaper price. It qualifies the holder to be a candidate for the housing lottery in Korea. Of course, the size of the property that you can purchase depends on your financial qualification (the longer you keep the savings account and the bigger the amount of your savings, the greater chance of buying low-priced apartments in this program).

You can apply for HBSSA at any of the six designated banks: Woori Bank, Kookmin Bank, Shinhan Bank, IBK Bank, Hana Bank and Nonghyup Bank. Eligible individuals can apply for only one account.

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*The maximum number of deposits in a 24-month period is 24 + 1 per month.

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The government reserves the right to change the interest rate at any time.

Government Projects : Eligibility Requirements

Priority one:

  • Must have had a “Home Buyers Installment Account” for at least 2 years
  • Must have made at least 24 installment payments on or before the designated date each month

Priority two:

  • Must have had a “Home Buyers Installment Account” for at least 6 months
  • Must have made at least 6 installment payments on or before the designated date each month

Private Projects: Eligibility Requirements

Priority one:

  • Must have had a “Home Buyers Installment Account” for at least 2 years
  • Principle must meet the minimum Regional Deposit Amount*

Priority two:

  • Must have had a “Home Buyers Installment Account” for at least 6 months
  • Principle must meet the minimum Regional Deposit Amount*

Other details

  • It is possible to use the “Home Buyers’ Installment Account” as collateral to secure a loan.
  • There are no cancelation fees and you can cancel (in person) anytime at any branch of your bank. Please note that before you leave Korea for good (and turn in your Alien Registration Card to Immigration), you must cancel this account. There is no way to access this account from overseas.
  • This account has no termination period. Therefore, you can save as long as you want or until you have saved up enough to purchase a house.
  • Later on if you change your plans, you may not spend the deposited amount in buying a home. It’s not a must.🙂

Requirement:  Alien Registration Card

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Home Buyers’ Installment Account (주택청약종합저축) from Woori Bank

Contact or visit your bank for more details. Happy saving!🙂

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