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The Cheongyak housing lottery is South Korea's government-managed system for allocating new apartments, especially in competitive cities like Seoul, where winning rates can be as low as 1-5%.
This system requires buyers to maintain savings accounts with regular deposits for months or years before becoming eligible, with strict residency requirements and post-purchase restrictions that can last up to 10 years.
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The Cheongyak system gives priority to first-time buyers and families who have maintained regular savings deposits for 2+ years, with government projects offering below-market prices but strict resale restrictions.
Seoul applications face intense competition with 1-5% success rates, while smaller cities offer better odds for buyers willing to relocate and meet the regional residency requirements.
| Requirement Category | Government Projects | Private Projects |
|---|---|---|
| Minimum Savings Period | 24 months | 6-12 months |
| Monthly Deposit | KRW 10,000-20,000 | KRW 10,000-20,000 |
| Upfront Payment | 10-20% of unit price | 10-20% of unit price |
| Resale Ban Period | 3-10 years | 3-5 years |
| Priority Factors | Family size, savings duration, first-time buyer | Deposit amount, regional residency |
| Success Rate in Seoul | 1-3% | 3-5% |
| Price vs Market | 20-30% below market | 10-15% below market |
What exactly is the Cheongyak housing lottery and why does the government run it in South Korea?
The Cheongyak housing lottery (ģ£¼ķģ²ģ½) is South Korea's government-managed system for distributing new apartment units, particularly in high-demand urban areas like Seoul and Busan.
The Korean government operates this system to prevent real estate speculation and provide fair access to housing for ordinary citizens. As of September 2025, the system prioritizes first-time buyers and families over investors, requiring participants to demonstrate genuine housing needs through regular savings deposits.
The lottery serves three main purposes: supporting housing stability for low- and middle-income households, discouraging speculative buying through strict eligibility requirements, and using participant deposits to help finance new construction projects. Government-backed units typically sell for 20-30% below market prices in Seoul, making them highly sought after.
This system becomes essential in cities like Seoul where private market prices have risen significantly, making homeownership difficult for regular wage earners without substantial family wealth.
Who is eligible to apply for Cheongyak and what are the main restrictions for buyers?
Korean citizens and eligible foreigners holding Alien Registration Cards can participate in the Cheongyak system, but each person can only maintain one active subscription account.
The main restrictions focus on genuine housing demand. First-time buyer households receive highest priority, while those already owning homes face lower selection chances or complete exclusion from certain projects. Regional residency requirements are strictly enforced - applicants must have their resident registration address in the target area for at least 6-12 months to qualify for local priority status.
Additional restrictions include income limits for certain government projects, with household income caps varying by region and project type. Divorced individuals, single-person households, and wealthier applicants may face reduced selection probabilities compared to families with children.
Foreign buyers face additional hurdles, including stricter documentation requirements and potential exclusion from the most competitive government-subsidized projects that prioritize Korean citizens.
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How many years of residence or savings history do I need in my housing subscription account to qualify?
| Project Type | Minimum Savings Period | Required Deposits |
|---|---|---|
| Government (LH) Projects | 24 months | 24 monthly payments |
| Private Developer Projects | 6-12 months | Minimum deposits met |
| Seoul Premium Areas | 12+ months | Higher deposit amounts |
| Metropolitan Cities | 6-12 months | Regional minimums |
| Smaller Cities | 6 months | Basic requirements |
How much money do I actually need to deposit into my ģ²ģ½ķµģ„ (Cheongyak subscription savings account) and how often?
The minimum monthly deposit ranges from KRW 10,000 to KRW 20,000, but higher deposits significantly improve your lottery selection chances and qualify you for larger apartment units.
For apartments under 85mĀ², a lump sum deposit of KRW 2.5 million can sometimes substitute for lengthy monthly savings periods. For larger units, the required deposit amounts increase substantially, often reaching KRW 5-10 million in accumulated savings for premium Seoul locations.
Monthly consistency matters more than amount - missing even one monthly payment can reset your priority status. The scoring system awards points based on both total deposit amount and savings duration, with longer savers receiving substantial advantages in the lottery selection process.
As of September 2025, successful applicants in Seoul's competitive districts typically have saved for 3-5 years with deposits well above the minimum requirements.
What types of apartments or housing projects are available through Cheongyak and how do they differ in price and size?
Cheongyak offers two main categories: government-backed projects through Korea Land & Housing Corporation (LH) and private developer projects, with significant differences in pricing and restrictions.
Government projects typically feature apartment units ranging from 40mĀ² to 100mĀ², priced 20-30% below market rates but subject to stricter eligibility requirements and longer resale bans. These projects often target first-time buyers and families with moderate incomes.
Private developer projects offer larger units (60mĀ² to 150m+) at prices closer to market rates - usually 10-15% below comparable existing apartments. These projects have more flexible eligibility but still require the subscription account system.
Unit sizes are categorized by square meters, with small units (under 60mĀ²) targeting single buyers or young couples, medium units (60-85mĀ²) for small families, and large units (over 85mĀ²) for established families. Prices in Seoul range from KRW 300 million for small units to over KRW 1 billion for large units in prime districts.
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How are priority groups determined and what gives me a higher chance of winning the lottery?
The Cheongyak system uses a points-based scoring system that awards higher priority to specific demographic and financial criteria, with family status and savings history carrying the most weight.
First-time homebuyers receive significant point bonuses, while families with multiple children under 18 earn additional points per child. Longer savings periods translate directly to higher scores - those saving for 5+ years typically outrank recent participants regardless of deposit amounts.
Regional residency duration affects priority levels, with local residents receiving preference over those from other areas. Military service completion, age (especially for those over 40), and specific occupations like teachers or government employees can provide additional point bonuses in certain projects.
The highest success rates go to married couples with children who have maintained maximum deposits for 3+ years while residing in the target district. Single applicants and childless couples face significantly lower selection probabilities.
Income levels also matter - middle-income households often receive priority over both low-income and high-income applicants, as the system targets stable working families.
What are the specific odds or success rates of winning Cheongyak in Seoul compared to other cities?
Seoul's Cheongyak success rates are notoriously low, ranging from 1-5% for most desirable projects, while smaller cities offer significantly better odds of 15-30% for similar applications.
The most competitive Seoul districts like Gangnam, Seocho, and Songpa report success rates below 2% for government projects, with some premium locations seeing ratios of 200-500 applicants per available unit. Private developer projects in these areas fare slightly better at 3-5% success rates.
Secondary Seoul districts like Nowon, Dobong, and outer Gangbuk areas offer improved odds of 8-15%, making them attractive alternatives for buyers willing to compromise on location. Busan, South Korea's second-largest city, typically shows success rates of 10-20% depending on district desirability.
Smaller cities and rural areas can have success rates above 50% for certain projects, but these locations offer limited employment opportunities and lower property appreciation potential. As of September 2025, the highest competition remains concentrated in Seoul's school districts with top-rated educational facilities.
What documents do I need to prepare before submitting my Cheongyak application?
1. **Personal identification documents**: Korean resident registration card or Alien Registration Card for foreigners, plus passport for verification purposes.2. **Cheongyak account documentation**: Original bankbook showing complete deposit history, bank statements proving consistent payments, and account opening date verification.3. **Residency proof**: Resident registration abstract (ģ£¼ėƼė±ė”ė±ė³ø) showing current address and duration of residence in the target area.4. **Family status documentation**: Family relationship certificate, marriage certificate if applicable, and birth certificates for dependent children.5. **Financial verification**: Income tax payment certificates, employment verification letters, and proof of other asset holdings if required by specific projects.6. **Military service records**: For Korean male citizens, proof of military service completion or exemption status.7. **Housing history documentation**: Previous homeownership records or certificates proving first-time buyer status for priority applications.How do I apply step by step, and where exactly do I go online to submit the application?
The Cheongyak application process begins with monitoring project announcements on the Korea Land & Housing Corporation (LH) official website at lh.or.kr, or individual private developer websites for their respective projects.
Step 1: Create an account on the LH website or the specific developer's application portal, providing your Cheongyak subscription account number and personal details. Step 2: Wait for new project announcements, which typically appear 2-4 weeks before application deadlines with detailed unit information and requirements.
Step 3: Submit your online application during the designated period (usually 3-5 days), selecting your preferred unit types and providing all required documentation through the portal's upload system. Step 4: Pay the application fee (typically KRW 30,000-50,000) and await lottery results, which are announced 1-2 weeks after the application period closes.
Most applications require submission between 9 AM and 6 PM on weekdays, with the website experiencing heavy traffic during peak hours. Successful applicants receive notification via SMS and email, followed by contract signing appointments within 10-14 days of winning notification.
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If I win, how much of the purchase price do I have to pay upfront, and what is the payment schedule after that?
Cheongyak winners typically pay 10-20% of the total unit price as an initial deposit upon contract signing, with the exact percentage varying by project type and developer policies.
The remaining balance follows construction milestones, with payments scheduled at foundation completion (20-30%), structural completion (20-30%), and final completion before move-in (40-50%). Government projects often allow more flexible payment schedules compared to private developers.
For a KRW 500 million apartment in Seoul, expect to pay KRW 50-100 million upfront, followed by KRW 100-150 million payments at each construction phase. The final payment is due upon receiving the completion certificate and keys, typically 12-24 months after contract signing.
Bank loans can cover up to 80% of the purchase price for qualified buyers, but loan approval must be secured before final payment deadlines. Late payments can result in contract cancellation and forfeiture of previous deposits.
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What restrictions apply after winningāsuch as resale bans, residency requirements, or penalties if I break the rules?
Cheongyak winners face strict post-purchase restrictions designed to prevent speculation, with resale bans lasting 3-10 years depending on the project location and type.
Government projects typically impose 5-10 year resale restrictions, while private developer projects usually limit resales for 3-5 years. During these periods, selling requires government approval and often involves paying substantial penalties equal to 10-30% of the original purchase price.
Residency requirements mandate that buyers must live in the unit as their primary residence for the restriction period. Regular inspections and utility usage monitoring help enforce compliance, with violations resulting in forced sale and penalty payments.
Additional restrictions include prohibitions on rental income during the first 1-2 years, limitations on property modifications without approval, and requirements to maintain the original intended use (residential only). Breaking these rules can result in permanent exclusion from future Cheongyak participation.
Foreign buyers may face additional restrictions on resale to other foreigners and requirements to maintain Korean residency status throughout the restriction period.
What are the biggest mistakes first-time buyers make with Cheongyak and how can I avoid them?
The most common mistake is insufficient preparation of deposit history, with many buyers discovering they missed critical monthly payments or failed to meet minimum savings requirements just before applying.
Address registration errors frequently disqualify applicants - failing to update resident registration to the target area months in advance eliminates local priority status. Documentation problems rank as the second most common issue, with incomplete or expired certificates leading to automatic application rejection.
Underestimating competition in Seoul leads many buyers to apply only for the most desirable districts, ignoring better opportunities in secondary areas with reasonable commute times. Payment timeline misunderstanding creates serious problems when winners cannot secure loans or arrange payments according to the strict construction schedule.
Project rule negligence causes post-purchase violations - many buyers don't thoroughly read specific project requirements regarding residency, modifications, or usage restrictions. Finally, over-optimism about winning chances leads to inadequate backup planning, leaving unsuccessful applicants without alternative housing strategies.
To avoid these mistakes, maintain perfect deposit records, update residency registration early, prepare all documents in advance, research multiple target areas, secure pre-approved loans, and thoroughly understand all project-specific rules.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The Cheongyak system offers genuine opportunities for first-time homebuyers in South Korea, but success requires careful preparation and realistic expectations about competition levels.
Understanding the point system, maintaining consistent savings, and targeting appropriate districts based on your profile significantly improve your chances in this complex but potentially rewarding housing allocation system.
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Sources
- Korea Housing - The House Subscription Merit System in South Korea
- Namu Wiki - Housing Subscription System
- Pinay Ajumma - Home Buyers Synthesized Savings Account
- National Pension Service - Housing Fund
- Namu Wiki - Housing Subscription Savings
- ACASH - Financialisation of Housing in South Korea
- Korea Times - Why Some Apartments are Considered Lottery Win
- Reddit - Living in Korea Housing Lottery Discussion