LH Launches 1.2 Trillion KRW Green Remodeling Project for Aging Public Rental Housing

From This Year to 2022, a Total of 50,000 Units Scheduled for March Early Order Announcement
Expecting Expanded Participation of General Construction Companies Following Amendment of the Enforcement Decree of the Framework Act on the Construction Industry

Construction Rental Remodeling Status / Provided by LH.

[Asia Economy Reporter Kangwook Cho] Korea Land and Housing Corporation (LH) announced on the 17th that it will invest approximately 1.2 trillion KRW over two years starting next month to promote a green remodeling project for about 45,000 aging public rental housing units.

The "Green Remodeling Project for Aging Public Rental Housing," conducted as part of the government's Green New Deal policy announced in July last year, aims to improve the energy efficiency of permanent rental housing units that have been completed for more than 15 years and enhance the living environment for vulnerable groups. The project includes △ installation of high-performance insulation materials and windows △ installation of high-efficiency LED lighting, condensing boilers, and complex ventilation systems.

This project is divided into construction rental projects such as △ household integration remodeling and △ single household remodeling, and facility improvement projects for purchased rental housing such as multi-family units. This project will be conducted targeting construction rental housing.

"Household Integration Remodeling" is a project that integrates two adjacent small-sized housing units (26㎡ each) into one larger unit (52㎡) by demolishing non-load-bearing walls, and after remodeling, these units will be supplied to multi-child families or newlyweds. "Single Household Remodeling" targets existing aging permanent rental housing and supplies remodeled units applying energy-saving technologies and eco-friendly materials to single-person households such as university students and housing-vulnerable groups.

LH has established an integrated two-year project ordering plan for green remodeling and plans to place orders for a total of about 45,000 units worth 1.19 trillion KRW, including this year's project volume (about 18,000 units), early next month and start construction in June.

Orders will be conducted by dividing regions into zones, and the order amount per zone is expected to be over 100 billion KRW. Details on how to participate in bidding and evaluation methods can be found on the LH website's electronic procurement system in early March.

In particular, from this year, with the revision of the Enforcement Decree of the Framework Act on the Construction Industry, the restrictions between general and specialized construction businesses have been removed, so the participation of general construction companies with excellent construction capabilities in large-scale public projects ordered by public entities such as LH is expected to increase.

An LH official said, "Although this remodeling project targets existing housing and is conducted separately from new construction, it is a large-scale policy project with a total project amount exceeding 1 trillion KRW," adding, "With the restructuring of the construction industry sectors, the expansion of participation by specialized construction companies is expected, raising expectations for strengthening the energy performance and improving the living environment of aging public rental housing."