South Korea plans to make the income tax deduction for Housing Subscription Savings permanent, removing a sunset clause that had left the measure due to expire at the end of 2028. The Ministry of Economy and Finance included the change in its Aug. 3 tax reform package as part of support for housing stability among non-homeowning working-class households, and the move aligns with President Lee Jae-myung's call to move beyond routine sunset extensions for vulnerable groups. The deduction, introduced in 2010, allows household heads and spouses in non-homeowning households with total annual salary income of 70 million won or less to deduct 40% of contributions, up to 1.2 million won, within an annual contribution cap of 3 million won. If enacted, the change would let account holders continue claiming the benefit without concern over expiration and could help ease worries about shrinking Housing and Urban Fund resources, which rely in part on subscription deposits alongside National Housing Bonds. Even so, subscription account attrition has continued. Nationwide account holders stood at 25,773,825 at the end of July, down 410,282 from the end of last year and well below the June 2022 peak of 28,599,279. The decline has been sharper in regional markets where apartment sales remain weak. In Daegu, account holders fell to 1,136,466 last year, down 23,927 from a year earlier, as oversupply and unsold homes weighed on demand. Analysts say tax support alone is unlikely to reverse the trend. High sale prices, tighter lending rules and a subscription point system that favors older households with long non-homeownership periods and more dependents have reduced the appeal of maintaining accounts, especially for younger buyers. Experts said broader reform of subscription criteria and more housing supply may be needed to restore demand.