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Research Report

Method of Legal Value Building in the Economic Order
  • Issue Date 2011-12-30
  • Page 277
  • Price 10,000
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The purpose of housing application system (so called Cheong-yak) which has been implemented in association with subion deposit is to distribute newly built houses with more than 20 units. In addition, scoring scheme has been carried out since 2007 in order to allocate new houses among potential buyers depending on their need and merits. However, the changes in housing market have led to the increase in dissatisfied subscribers and the decrease in the policy efficacy. This study aims to discover the problems of housing application system focusing on subion deposit and scoring scheme and to suggest policy implication for better performance of housing allocation system.


The scoring scheme was introduced to get non-homeowners settled in places of their own. In general these houseless people do not have affordability to purchase houses although the government has considered them as real demand. As a result, the new apartments subject to the scoring scheme have not been sold well whereas those having their own houses who want to buy new apartments have not always met their demand. Therefore, I insisted that the government should cleary define the target of beneficiary before implementing the scoring scheme if this measure intends to allocate more development(capital) gains to low incomer. In other words, the scoring scheme should focus on supporting households with low income and in social need. On the other hand, new houses for middle and high income family should be allocated by not the housing application system but housing market.


The government introduced ‘comprehensive subion deposit’ in 2009 so as to invigorate subion deposit and to give more opportunity of housing application, but this new subion deposit results in conflict with the scoring scheme. Furthermore, only one thirds of subion deposit has flowed into National Housing Fund so far. It is also difficult to come to understand the current status of operating expense. I suggest that subion deposit should be implemented for public housing and be adjusted the deposit amount for low incomer. The funds from subion deposit should be utilized for constructing public houses and be more transparent about expense information which is something historically not been revealed. More than all, the paradigm of housing policy should be shifted from supporting house ownership to improving residential stability.


Nowadays as we suffer from global warming problems by fossil fuel, there’s some reflection about our (hard) energy path. Until now the whole world on the earth absolutely uses fossil fuel, and recently it partially changed to nuclear power energy. The main reason of fossil fuel and nuclear energy growing up and becoming social main energy is not only because its cheapness also because strong inertia of energy path, it is more and more hard to changeover the direction of energy path. Especially nuclear power was(and is) very expensive to general use but the end of the Cold War leaved useless nuclear weapons and weapon plants so some countries should bite the bullet and nuclear could take a share of energy production. The social structure with hard energy path takes and needs very much costs. Though many parts of these costs can’t be measured, fossil fuel base needs war cost to acquire resource, social cost of global warming and air pollution and long transport cost etc..


The nuclear power also takes cost be exposure to radiation, high-level radioactive waste(HLW) & low-level waste(LLW) disposal and storage cost, plant disassemble cost, We also witnessed the Fukusima nuclear plant explosion disaster and it's restoring cost estimated about £188 billion, so we became to recognize the hidden cost of nuclear power can be limitless. So we and our society must consider the changeover the energy path by using renewable energy and growing the efficiency & safety of energy. It also means solving the problems of economic growth slowdown and energy performance and technology slowdown, and changing main energy source as innovative direction. Because the early energy path setting must be easily hard and permanent, if we find out the problems of energy use and structure, we must changeover the path as soon as possible. To this things, several policy alternatives are required and change of investment to special energy source is needed.