Korea's Minister of Land, Infrastructure and Transport Kim Yoon-deok announced plans to mobilize both public and private supply capabilities to stabilize the housing market. The government aims to secure over 100,000 new public housing units while accelerating the construction timelines for existing public sites and redevelopment projects, targeting an additional supply of more than 230,000 homes in the metropolitan area.
During a briefing on August 13 regarding measures for stabilizing the rental and sales markets, Kim stated, "We will do our utmost to supply the housing that the public wants, in the locations they desire, sufficiently and in a timely manner."
He emphasized the need for a different approach to address the slow recovery of private housing supply, which constitutes the majority of the market.
Kim noted, "We will minimize the time lag between policy announcements and supply through a groundbreaking innovation in supply speed, as well as by preparing proactive improvements across regulations, finance, and taxation." The government plans to increase the supply speed of the existing 9·7 measures while adding over 230,000 homes in the metropolitan area.
Initially, the government will supply more than 100,000 homes through new public housing districts. The three districts announced, including Gangseo in Seoul, Namyangju city center, and Gwangju in Gyeonggi Province, will provide 27,000 homes, with construction expected to begin within three to four years. The remaining 73,000 homes will be announced in phases.
Existing public sites will also see accelerated timelines. The period from site announcement to construction will be reduced from the current 68 months to about 37 months, and the construction start for 89,000 homes in the third new town will be advanced by one to two years.
Kim explained, "We will streamline and expedite the procedures that have been sequentially carried out at each stage of land development, such as permits and compensation." Measures to prevent speculation, including designating land transaction permission zones, will also be applied to new sites.
The government will also expand housing supply in urban areas. It plans to support the construction of 234,000 homes in the metropolitan area by 2030 through accelerated redevelopment and reconstruction projects. This includes easing the agreement rate for redevelopment associations, improving relocation loan conditions, and increasing the purchase price for public contribution rental housing. The establishment of a mediation committee for maintenance projects within the Ministry of Land is also under consideration.
In the second half of the year, the government will select new candidate sites for urban public housing complex projects in Seoul, aiming for 10,000 to 20,000 units. This initiative is part of a broader goal to start construction on 51,000 homes by 2030, including 22,000 homes from small-scale maintenance projects.
Kim stated that through redevelopment, reconstruction, urban complexes, and small-scale maintenance projects, the government aims to supply 30,000 homes annually in Seoul, exceeding the long-term average of 22,000.
To revive private housing supply, financial and tax support will also be expanded. Starting in the second half of the year, the government will launch a 1 trillion won PF development anchor REITs project and plans to create an additional 400 billion won housing-specific anchor REITs in the metropolitan area next year.
For projects starting in Seoul and Gyeonggi Province by 2027, the government will subsidize 1 percentage point of PF loan interest from its budget, and for projects starting in 2028, it will provide a 0.5 percentage point subsidy. Public PF guarantee fees will also be reduced by 30%.
Supply of non-apartment housing, such as villas and multi-family homes, will be increased. The government will relax regulations on building area, number of floors, and sunlight for multi-family and multi-unit buildings, and expand fund loans. The exemption from housing count for newly built non-apartments will also be extended until 2028.
Efforts to restore housing opportunities for young people and newlyweds will be pursued. About 15% of public sale units will be offered in equity accumulation or profit-sharing formats, with sales expected to begin in the fourth quarter of this year. Universal public rental and youth lease rental programs will also be newly introduced.
To enhance the execution of supply measures, the government plans to establish a "Rapid Housing Supply Inspection Meeting" chaired by the Prime Minister and a "Rapid Supply Innovation Team" led by the Vice Minister of Land.
Kim concluded, "To ensure housing stability for the public, it is crucial to strengthen the supply foundation. We will promptly fulfill the responsibilities of the public sector and boldly support areas where the private sector excels."
* This article has been translated by AI.
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