A detailed comparison and analysis of the differences between LH and SH applications. from types of public housing to conversion conditions to how to apply, we've summarized the key information you need to know.

table of contents

  • what is public rental housing?
  • All about LH applications
    • Types of rental housing offered by LH
    • what makes LH rental housing attractive
  • The Complete Guide to SH Application
    • special benefits for Seoul residents
    • what is Shift Housing?
  • Key differences between LH and SH applications
  • how to Apply and What to Expect
  • frequently Asked Questions (FAQ)
  • wrapping Up

what is Public Housing?

with housing prices skyrocketing, do you feel like your dream of owning your own home is getting further and further away? the government and public organizations provide public rental housing for homeless households at a fraction of the market rate.

two of the leading providers are the Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH), which are referred to as LH Blue Book and SH Blue Book, respectively, with slightly different application qualifications, conditions, and housing types. today, we'll take a closer look at the differences between the two, so you can make the right choice for you.

The ins and outs of LH

Types of rental housing LH offers

The biggest feature of LH is that it's available nationwide. you can apply not only in the Seoul metropolitan area, but also in major cities such as Busan, Daegu, Gwangju, and Daejeon, making LH a great option for those who are planning to move from the provinces to Seoul, or vice versa.

Let's take a look at the typical types of rental housing operated by LH.

first, national rental housing. it is aimed at households earning 70% or less of the average income of urban workers, and can be rented for up to 30 years. deposits and monthly rent are set at 60-80% of the market rate, making it affordable.

second, Happy Housing. these are customized homes for college students, newlyweds, young adults, and first-time entrepreneurs, and are located near work or school, making it convenient for commuting. the length of residency varies by class, but usually ranges from 6 to 10 years.

third, permanent rental housing. this type of housing is for the socially disadvantaged, such as those on welfare or medical benefits and those with national merit, and requires the lowest deposit and rent. as the name suggests, you can live there permanently, which is a big advantage.

the appeal of LH housing

Another attractive feature of LH housing is the conversion rental housing. this is a system that allows you to sell your home after renting it for a certain period of time, usually 10 years for apartments and 6 years for villas.

for example, if a newlywed couple in their early 30s moves into a converted rental house, they can live in it for 10 years at a rent that is lower than the market rate, save money, and have a stable place to call home when they reach their early 40s. the sale price is also below market value because it's set at the arithmetic mean of the appraised value.

The Complete Guide to SH Housing

special benefits for Seoul residents

SH is a unique benefit that only Seoul residents can apply for. it offers a wide range of rental housing types spread across Seoul, especially in station areas with convenient transportation and close proximity to work.

Like LH, SH offers national rental, happy housing, and permanent rental, but it has its own unique housing types that make it even more attractive.

what is Shift Housing?

SH's representative special housing programs include long-term rental housing shift and pre-owned housing shift.

long-term rental housing shifts are homes where you can live rent-free for up to 20 years with only a deposit. you can move in with a deposit of 80% of the market value, and you can extend your stay by renewing your lease every two years. they're popular with families who want to save money on living expenses without the burden of rent.

mirimae Shift is a special housing supply for newlyweds and newlyweds-to-be. you can sell your home after 10 years, and the price depends on the number of children you have. if you have no children, you can get 90% of the market price, if you have one child, 85%, and if you have two or more children, 80%, which is favorable for families with multiple children.

to give a real-life example, Mr. and Mrs. Kim, who moved into Mirinae in 2020, were newlyweds at the time, but are now parents of two children. they were able to purchase an apartment in 2030 at 80% of the market price, which helped them plan for a stable housing future.

Key differences between LH and SH

the main difference between the two subscription systems is the supply area. While LH is available nationwide, SH is limited to Seoul, so the first criterion for choosing is where you want to live.

there are also differences in terms of conversion. While LH can be converted to various types of rental housing, SH can only be converted to a Mirinae house shift. however, SH has a special benefit of discounted sales price based on the number of children, which is attractive to newlyweds and parents-to-be.

the application system is also different. LH applications are made through an integrated platform called LH Application Plus, while SH applications are made through the SH Internet Application System. You need to register for each system and prepare an authorized certificate.

in terms of competition, SH applications are generally more competitive in the Seoul area. however, LH applications are also highly competitive in popular areas of the Seoul metropolitan area, so it is important to understand the demand by region.

how to apply and what to expect

here are the basic things you need to do to prepare for the application.

first, you need to make sure that you and all members of your household are free of housing, which can be verified with a copy of your resident registration and a certificate of full building registration.

the income threshold is also important. each type of rental housing has different income thresholds, so be sure to prepare your income tax receipt or proof of the amount of your income, especially if you're a married couple, as it's based on your combined income.

a subscription passbook is also required. to qualify, you need to sign up for a housing contract savings account and make payments for a certain period of time. the number of contributions required varies by region and housing type, so check beforehand.

frequently asked questions (FAQ)

Q1. Can I apply for LH and SH at the same time? A. Yes, you can. the two programs are run separately, so as long as you meet the eligibility requirements, you can apply at the same time. however, you will have to choose one of them if you win.

Q2. How is the market price determined at the time of conversion? A. It is determined by the arithmetic average of the appraisals from two appraisers at the time of conversion. it will usually be lower than the surrounding market value.

Q3. What happens if my income is exceeded while living in a rental home? A. You may have to pay increased rent or move out after a certain grace period. check your lease as each type of home has different standards.

Q4. Are there any penalties if I back out after winning an offer? A. If you abandon your contract after winning, you may be restricted from applying for rental housing from that organization for a period of time. please make a careful decision.

Q5. Can I move in with my pet? A. The rules vary by complex. recently, more and more complexes are allowing pets, so please check the announcement carefully.

wrapping up

Now you know the pros and cons of LH and SH housing, as well as their features and characteristics for households without homes, public rental housing can be a great stepping stone to homeownership. consider your income level, the neighborhood you want to live in, and the size of your family to determine which option is best for you.

key takeaway: LH is nationwide and SH is limited to Seoul, so it's important to make a strategic choice based on your situation.

let us know in the comments if you have any questions as you prepare to apply. and don't forget to subscribe and set up alerts for more real estate tips!