The South Korean government plans to accelerate housing supply by starting construction on the third new towns up to two years earlier and simplifying the procedures for reconstruction and redevelopment. It will also strengthen crackdowns on illegal activities in the real estate market, including real estate agent cartels and corruption in maintenance associations.
On July 16, the Ministry of Land, Infrastructure and Transport presented a report to President Lee Jae-myung under the theme 'Building the Future, Connecting Everyone,' outlining its commitment to housing stability and balanced development through 'four major reforms and four strategies.'
The ministry aims to focus its policy efforts on supplying sufficient housing more quickly in areas desired by the public. To achieve this, it plans to advance the construction start dates for key public housing sites, including the third new towns, by one to two years, and support the commencement of maintenance projects such as reconstruction and redevelopment through relocation assistance and procedural simplification.
Additionally, the ministry will expand the conversion of non-residential land, such as commercial sites, into housing and plans to announce new candidates for urban complex projects in Seoul later this month.
Changes will also be made to the reconstruction system. The ministry intends to impose penalties for not opening public pedestrian pathways to ensure public accessibility and to manage excessive public contributions and high-cost welfare facilities more reasonably to reduce project costs.
Public housing supply for youth and the middle class will also be increased. In a Q&A session following the report, the ministry stated, 'We are considering establishing a new type of public rental housing that middle-class individuals can also reside in, with a significant portion allocated for young people.'
In conjunction with the housing supply expansion, reforms to the Korea Land and Housing Corporation (LH) are also moving forward. The ministry plans to announce the LH reform plan in September, stating, 'The conditions for appointing the LH president have been established, and we have finalized the schedule for the reform plan.' It added that the housing welfare roadmap will be pursued in conjunction with the scale of LH supply.
The ministry is also taking steps to establish order in the real estate market. It will focus on managing five major illegal real estate activities, including real estate agent cartels, illegal activities by maintenance associations, violations of actual residence obligations, real estate hoarding, and small-scale development fragmentation, while continuing investigations and crackdowns on distorted trading practices.
Measures to prevent rental fraud will be strengthened. The ministry is revising related systems in line with the minimum guarantee system and the advance payment and post-settlement system set to take effect in November next year, and will promote risk assessment services through the Safe Rental App and the Safe Trust Project.
The 'Safe Trust Project' aims to protect tenants' rental deposits. Regarding the funding for this project, the ministry explained, 'It will not require government financial input, as it will operate by entrusting privately owned housing to an organization.'
Additionally, to promote balanced regional development, the ministry will work on creating corporate-style advanced cities and expanding transportation infrastructure centered on local areas. Plans for the construction of new airports in Gadukdo, Daegu-Gyeongbuk, and Saemangeum, as well as the revitalization of local airports, will continue.
Minister of Land, Infrastructure and Transport Kim Yoon-deok stated, 'As we enter the second year of the people's sovereignty government, we will do our utmost to achieve tangible results in key areas such as balanced development, housing stability, public safety, transportation innovation, and future growth.'
Meanwhile, the ministry is also pushing for the enactment of a special law to promote modular housing. It expressed optimism that the law would progress once the National Assembly's reorganization is completed, while continuing efforts to expand LH orders to grow the industrial ecosystem. The ministry also noted that it plans to announce its public institution relocation plans by the end of this year, although specific timing has not yet been determined.
* This article has been translated by AI.
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