The Public Bogeumjari housing program is being operated to promote residential stability of low-income and assisted housing tenants. However, this program has not been effectively carried out due to the financial deterioration of the Korea Land & Housing Corporation which precipitated from the recent downturn in the housing market. It has been pointed out that the supply of cheap housing for installment sale has had a negative impact on the housing market, and that some public house owners are expected to gain future profit. Therefore, in this report, the National Assembly Budget Office evaluated the public housing program in terms of housing welfare and residential stability.
 
According to evaluation results, the government has provided housing regardless of income level, unlike previously announced intentions to provide housing to people below a certain level of income. There is lack of fairness and objectivity in the criteria for selecting suitable residents. Furthermore, the housing program cannot stabilize the housing market since less than half of the housing demand was fulfilled. Housing welfare has deteriorated due to the inefficient progress of public rental housing systems. In particular, the financial condition of landlords is highly likely to deteriorate due to operating expenses exceedingrentaldeposits.
 
To solve those problems, the government may need to propel the public housing program carefully, considering the rapidly changing housing market and setting the performance goals of the public housing program specifically. More strict criteria are needed on purchasing public housing. Considering the equity of the beneficiary on the policy, the policy targets need to be adjusted. Also it is necessary to conduct the feasibility study on the supply of public rental housing for the welfare and to take measures to reduce losses by operating public rental housing.

Ahn Tae-hun