How Korea’s Housing Subscription (Cheongyak) System Works

This guide is for expats, investors, and newcomers trying to understand why Koreans open special bank accounts years before buying an apartment. The short answer: in Korea, most new apartments are not simply sold to whoever offers the highest price. Instead, the government manages a nationwide queuing and scoring system called cheongyak (청약, housing subscription). To be in the queue, you need a dedicated savings account. To win a unit, you need enough points—or luck in a draw. Here is how it all fits together.

How It Works

Step 1: Open a housing subscription savings account

Anyone who wants to apply for a newly built apartment must first hold a Housing Subscription Comprehensive Savings Account (주택청약종합저축, jut-taek cheongyak jonghap jeochuk). This is a government-designated savings account offered by designated banks. The minimum opening deposit is 20,000 KRW (Korean won, approximately USD 15). You then contribute between 20,000 and 500,000 KRW per month. Since late 2024, the government recognises up to 250,000 KRW per month for scoring purposes—raised from the previous cap of 100,000 KRW, which had been unchanged for over 40 years. The account doubles as both an eligibility ticket and a score-building tool.

Step 2: Build your score (for the points-based track)

When a developer launches a new apartment complex, eligible applicants compete either through a points system (청약가점제, cheongyak gajeomje) or through a random draw (추첨제, chucheomje), depending on the apartment type and location. In the points system, each applicant receives a score out of a maximum of 84 points across three categories:

• Years without owning a home — up to 32 points. You earn more points the longer you have been a non-homeowner. First-time buyers with no prior ownership receive the full 32 points.
• Number of dependents — up to 35 points. Dependents include a spouse, children, and qualifying parents or in-laws living in the same household. More family members mean more points.
• Years the subscription account has been open — up to 17 points. The account must be held for at least 6 months to earn any points at all; the score grows gradually, maxing out after 15 years.

A perfect score of 84 is rare in practice. Competitive Seoul developments often see winning scores in the high 60s or 70s. In April 2026, Korean media reported that younger applicants in their 30s and 40s were abandoning their accounts because achieving a competitive score takes decades.

Step 3: Apply during the subscription window

When a complex opens applications, eligible residents of the designated area apply online through Cheongyak Home (청약홈), the portal run by the Korea Real Estate Board (한국부동산원). Applications are open for a fixed window, typically a few days. Applicants choose a specific unit type and size, not a specific floor or view.

First priority vs. second priority

Applicants are ranked into first priority (1순위) and second priority (2순위). First priority generally requires:

• The subscription account has been open for at least 24 months in regulated areas (such as most of Seoul and Gyeonggi Province) or 12 months in non-regulated areas.
• The applicant is not a member of a household that owns two or more homes.
• The total deposited amount meets the minimum threshold for the region and unit size.

Second-priority applicants are considered only if first-priority applicants do not fill all available units. In many popular Seoul developments, second-priority applicants have essentially no chance.

Public housing vs. private housing

The rules differ slightly between the two main categories. Public housing (공공분양, gonggong bunyang), built by state developers such as LH (Korea Land & Housing Corporation) or SH (Seoul Housing & Communities Corporation), is reserved entirely for income- and asset-eligible households. It prioritises first-time buyers, newlyweds married within seven years, households with young children, and people with low incomes. Selection is mostly by random draw within each priority group. Private housing (민간분양, mingan bunyang), built by commercial developers, is open to a wider range of applicants. Units up to 85 square metres in regulated areas use the points system for a defined share of units; the remainder goes to a random draw. Larger units and developments in non-regulated areas rely more heavily on random draws.

Why Korea Does It This Way

The cheongyak system began in 1977, when South Korea faced a severe urban housing shortage as millions of people moved to Seoul and other cities during rapid industrialisation. The government needed a mechanism to allocate new apartments fairly and to channel household savings into construction financing.

The system was extended to private housing in 1978. Developers received construction loans backed partly by the subscription deposits collected from applicants. In return, the government controlled who could buy the apartments and, for many years, at what price. Presale price controls (분양가 상한제, bunyang-ga sanghan-je), which cap the sale price of new apartments below market value, remain in force in designated areas. These controls mean a new apartment can be significantly cheaper than a comparable unit on the open market—creating the intense competition that makes cheongyak so consequential for Korean households.

The Numbers That Matter

What It Means for You

If you are a renter

Most long-term foreign residents in Korea are renting, often through jeonse (전세, a large lump-sum deposit paid instead of monthly rent) or monthly rent. Opening a subscription account now costs very little and starts the clock on your account age—one of the three scoring factors. Even if you do not plan to buy soon, an older account will be more competitive later.

If you are a worker building long-term roots

The system rewards patience. Each year you remain a non-homeowner in Korea adds to your score. If you have a family, each dependent adds more. The practical steps are: open a subscription account at any designated bank, contribute at least the minimum monthly amount, and register the account with Cheongyak Home once you are ready to apply for housing.

If you are an investor or Korea-watcher

New apartments sold under presale price controls can trade at a significant premium to their presale price once restrictions lift—sometimes after two to three years. This premium is known colloquially as premi (프리미엄). The gap between presale and resale prices is a closely watched indicator of local housing demand. Note that Korea has introduced or tightened restrictions on resale and capital gains taxes in regulated areas at various points; always verify current rules with a licensed real estate attorney before acting.

If you are a foreign resident

Foreign nationals who hold a valid Alien Registration Card (ARC, 외국인등록증) are generally eligible to open a subscription account and apply for private housing. Eligibility for public housing—which has stricter income and asset requirements—is more limited and depends on visa status. Overseas Koreans with a domestic residency report are treated similarly to ARC holders. Foreigners on short-stay visas (less than 90 days) are not eligible. Before applying, confirm your eligibility category on the Cheongyak Home portal or with your bank, as rules can change.

FAQ

Can a foreigner win a cheongyak draw and buy the apartment?

Yes, in most cases. If you hold an ARC, meet the account and priority conditions, and win the draw or score high enough, you can purchase the unit. You will need to comply with Korea’s real estate acquisition reporting rules for foreigners and standard mortgage eligibility criteria. Consult a licensed real estate attorney for your specific situation.

What happens if I close my subscription account?

Closing the account means losing all accumulated points and your account age. You cannot transfer points to a new account. If you reopen an account later, you start from zero. This is why financial advisers in Korea commonly recommend keeping the account open even during periods when you are not actively looking to buy.

Is cheongyak the only way to buy a new apartment in Korea?

For most newly built apartment complexes, yes—the cheongyak process is the required first step. However, units that go unsold after the initial subscription rounds, and units in smaller complexes below 20 units, may be sold directly without going through the subscription system. Resale apartments (existing units on the secondary market) are bought and sold freely without any subscription requirement.

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