[비즈한국] In the real estate market, there are two types of fear. One is the fear of buying—‘What if I buy now and prices drop?’—and the other is the fear of being homeless—‘What if I live my whole life without a home of my own?’ What is interesting is that while these two fears always coexist, they take turns dominating the market depending on the economic cycle.
Currently, Korea’s generation in their 30s and 40s is deeply gripped by the former. In the midst of a triple hardship—dozens of rounds of tightened regulations, reduced loan limits, and an increased tax burden—an atmosphere prevails where the very idea of ‘owning a home’ feels like a luxury. Subscription scores don't rise, jeonse (charter rent) prices climb, and sales prices refuse to stabilize. Amidst all this, those in their 30s and 40s are quietly exiting the market.
However, I want to say this firmly: now is a historic window of opportunity for the 30-40 demographic who do not own homes. Right now, as fear dominates the market, the opportunity is hidden within that very fear.
Who are these regulations for?
Real estate regulatory policies in recent years have ostensibly aimed to ‘stabilize house prices’ and ‘curb multi-home owners.’ From higher acquisition taxes and strengthened comprehensive real estate taxes to increased capital gains taxes and reduced loan-to-value (LTV) and debt-to-income (DTI) ratios, the arrows of regulation were clearly aimed at speculative demand from multi-home owners.
However, a strange phenomenon occurred. Those who do not own homes, who have nothing to do with these taxes, shrank back even more than the multi-home owners who were actually subject to them. The reason is simple. Between the complexity of the policies and sensationalist media reports, a psychological stigma took hold among non-homeowners: ‘Now is not the time to buy a house.’
If you look coldly at the numbers, the reality is completely different. In most cases, tax regulations targeting multi-home owners do not apply to first-time homebuyers or those purchasing a single home for actual residence. In fact, the government has provided ‘carrots’ for non-homeowners: strengthening subscription systems for first-time buyers, expanding acquisition tax exemptions for first-time home purchases, and providing low-interest policy loans like the Special Bogeumjari Loan. In other words, non-homeowners who failed to properly read the direction of these regulations are essentially kicking away their own opportunities.
Face the reality of the ‘Byeorak-geoji’ fear
Between 2020 and 2021, when apartment prices skyrocketed, a new term was coined: ‘Byeorak-geoji’ (literally, a ‘lightning-strike beggar’). It refers to non-homeowners who became relatively poorer while those around them bought homes and suddenly became wealthy. The term contains a bitter sense of self-deprecation.
The important thing is that this is not just a matter of psychological deprivation. From the perspective of inflation, having no assets means becoming poorer in real terms at the rate that the purchasing power of money declines. Cash and savings cannot keep up with inflation rates. On the other hand, real estate has been verified over the long term as one of the most effective assets for hedging against inflation.
What is noteworthy is that the asset gap between those who own a home and those who do not widens exponentially over time. Compare the asset status of someone who bought an average-priced apartment in Seoul 10 years ago with someone who lived in a jeonse rental over the same period. It’s not just the increase in house prices. When you include the leverage effect of loans, the absence of the burden of returning large jeonse deposits, and residential stability, the gap manifests as a difference in quality of life that exceeds simple numbers. If you understand this structure, you begin to see how dangerous it is to turn your back on the market just because ‘it’s too scary right now.’
Don't let reduced loans shrink your dreams
It is true that the limit on available loans has decreased due to stricter LTV (Loan-to-Value) and DSR (Debt Service Ratio) regulations. The frustration for the 30-40 demographic is particularly high here. People say, “I could borrow more in the past,” or “I don’t have the ability to buy a house like that now.”
You need to change your perspective here. Stricter loan regulations also have the effect of suppressing indiscriminate speculative demand. From the perspective of actual buyers, it means there is less competition. As investors who intended to use gap investments or leverage to buy multiple properties exit the market, a phase is unfolding where the range of choices is actually widening for real-life buyers looking for a single home to live in.
Furthermore, you should actively utilize policy financial products provided by the government for non-homeowners. Loans such as the Newborn Special Loan, the Didimdol Loan, and the Bogeumjari Loan are designed with more favorable conditions than commercial interest rates; if you meet the requirements, you can secure significant funds at much lower rates than standard loans. It is unfortunate that many in their 30s and 40s are still unaware of the existence of these policy products.
You should approach financial planning in this order: First, accurately grasp your net assets and disposable income. Second, check the eligibility for policy financial products. Third, calculate the maximum amount you can borrow. Finally, select the regions and complexes you can afford within that range. Instead of blaming budget limits, finding the best choice within that budget is the correct approach for an actual buyer.
Five actions you must take right now
If you still feel lost after reading this column and are wondering, ‘Where should I start?,’ I suggest you take these five actions immediately.
First, check your housing subscription savings status and optimize your monthly contributions. If you haven't joined yet, join today. A subscription account is the foundational asset you must create first.
Second, check your eligibility for policy financial products. Verify the requirements for Didimdol loans, newborn special loans, and Bogeumjari loans through the Korea Housing & Urban Guarantee Corporation website or bank branches, and determine your maximum possible loan limit.
Third, regularly check actual transaction prices in areas of interest. By learning the flow of transactions over the past 3, 6, and 12 months via the Ministry of Land, Infrastructure and Transport’s official system, you will start to develop a sense for the market.
Fourth, visit the sites in person. Real estate seen only through maps and apps is different from real estate you walk through yourself. You must physically feel the surrounding infrastructure, traffic convenience, and living environment to make a sound judgment.
Fifth, start studying real estate. A single book, one column, or one lecture can be worth tens of millions of won. The difference between knowing the market and not knowing it ultimately manifests in the choices you make, and those choices create the asset gap 10 years later.
Finally, on courage
Every opportunity in the world comes disguised in the clothes of fear. If an opportunity were easy for everyone to recognize, it wouldn’t be an opportunity. The courage to step forward when others are afraid and shrinking away is the most valuable virtue in the world of assets.
I fully understand the fear currently felt by those in their 30s and 40s. Who wouldn't be afraid of taking on a debt worth hundreds of millions of won? The anxiety that policies might change suddenly, the worry about what if prices fall after I buy, and the impatience about whether I am falling behind others—this is the reality of buying your first home, where all these emotions come crashing down at once.
However, look beyond that fear. Imagine yourself 10 years from now looking back at this choice. Will you be the person relieved that “I’m glad I bought it then,” or the person regretting, “Why did I hesitate back then?” History has already provided the answer.
If you don't know, it's scary; if you know, it's an opportunity. What you need right now is not perfect timing, but the courage to study and make a decision. I truly hope you do not let fear take away this quiet time of opportunity created by a sluggish market. I am rooting for your first home purchase.
Kim Hak-ryeol, the head of the Smart Tube Real Estate Research Institute known by his pen name ‘Pasyong,’ is a former team leader of the Real Estate Research Division at Gallup Korea. He manages and hosts the Naver blog ‘Pasyong’s World Exploration’ and the YouTube channel ‘Stew TV.’ His publications include ‘3040 Real Estate Beginner’s Guide (2026),’ ‘Rewriting the Korea Real Estate User Manual (2025),’ ‘The Power of Gyeonggi Real Estate (2024),’ ‘Absolute Principles of Seoul Real Estate (2023),’ ‘The Future of Incheon Real Estate (2022),’ ‘Kim Hak-ryeol’s Absolute Principles of Real Estate Investment (2022),’ ‘Korea’s Real Estate Future Map (2021),’ and ‘From Now On, Only Places That Will Rise Will Rise (2020).’