The Korea Land and Housing Corporation (LH) is strengthening its collaboration with the construction industry to support the government's housing supply expansion policy. To achieve its goal of starting construction on 50,000 public housing units this year, LH is addressing project delays and plans to consolidate the bidding for 4,744 public housing units to initiate construction by the end of the year.
On October 22, LH held a housing supply meeting with the Korea Construction Association at the Construction Hall in Gangnam, Seoul, to discuss ways to enhance public-private cooperation.
This meeting follows a previous gathering in August between LH and relevant housing construction associations. It aims to support the government's 'Housing Stability Plan' and accelerate the supply of public housing.
Attendees included LH President Lee Seong-hoon, Korea Construction Association President Han Seung-gu, Executive Vice President Kwon Hyuk-jin, DL E&C CEO Park Sang-sin, and Kumho Construction CEO Jo Wan-seok.
Participants discussed strategies for the rapid supply of public housing, ensuring quality in universal public rentals through technical cooperation, and revitalizing housing supply through private participation and mixed-use land.
Lee Seong-hoon, President of LH, stated, "It is crucial to strengthen collaboration with the construction industry so that the public can quickly and reliably feel the effects of housing policies. We will combine the construction industry's field experience and technical capabilities with LH's project execution capabilities to accelerate housing supply."
LH has also intensified its project monitoring to meet the goal of starting construction on 50,000 public housing units this year. On October 21, a meeting was held at the Southern Gyeonggi Regional Headquarters with over 50 participants, including officials responsible for major construction sites in the metropolitan area.
The meeting focused on sharing the progress of projects by district and discussing proactive measures to resolve factors causing construction delays.
To increase the supply speed, LH is pursuing consolidated bidding. This year, it plans to bundle the construction of 4,744 public housing units across 13 blocks into six contracts, aiming to start construction in December.
Consolidated bidding involves grouping projects in nearby districts with similar construction timelines. This approach aims to reduce redundant bidding procedures and administrative tasks, allowing construction companies to utilize materials, equipment, and specialized personnel more efficiently.
The consolidated bidding will include blocks such as Bucheon Daechang A11 and A15, Incheon Gyeyang A22, Namyangju Jinjeop 2 A5 and A8, and Daegu Yeonho A1.
LH expects to save approximately 12.9 billion won in construction costs through this consolidated bidding. The total expected savings from the implementation of consolidated bidding this year, including construction project management service fees, is estimated at around 261.2 billion won.
Additionally, LH plans to encourage the participation of large construction companies with capabilities in construction, quality, and safety management for small-scale projects in local areas.
As concerns about delays in LH's public housing construction were raised during a recent government audit, the importance of shortening bidding procedures and collaborating with private construction firms to meet year-end targets has increased.
Han Seung-gu, President of the Korea Construction Association, emphasized, "To significantly enhance the speed and efficiency of housing supply, public and private sectors must work more closely than ever. The construction industry will actively cooperate to improve the living environment and housing stability for the public through thorough quality management and safe construction."
* This article has been translated by AI.
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