Public Hearing on Measures to Promote Private Sector Participation in Supplying Public Rental Housing Including Station-Area Youth Housing

Seoul City Council Chairman of the Urban Planning Management Committee Kim Hee-geol Holds Public Hearing: Active Suggestions on Private Sector Participation in Public Rental Housing Supply

[Asia Economy Reporter Jongil Park] Recently, interest in stable housing has been higher than ever due to soaring house prices in Seoul and a shortage of monthly rent and jeonse deposits.

Amid this, a public hearing was held to discuss ways to activate private sector participation in the supply of public rental housing in Seoul.

Public rental housing refers to public rental housing owned by the public sector and publicly supported rental housing owned by the private sector.

The hearing provided an opportunity to discuss the current status and improvement plans of existing public rental housing such as station-area youth housing and social housing, as well as plans for future expansion models like co-living housing and Moa housing.

Additionally, proposals and discussions on the role and participation methods of the private sector, including financial aspects, were held.

Due to COVID-19 prevention measures, direct public attendance was difficult, but real-time viewing was available via the Seoul Metropolitan Council website’s ‘Internet Live Broadcast’.

The hearing began with an opening address by Chairman Heegul Kim (photo, Democratic Party, Yangcheon 4), followed by presentations on the institutional status, supply plans, and performance reports of Seoul’s public rental housing.

▲ Current status and plans for station-area youth housing (Daegun Ha, Director of Seoul Housing Supply Division) ▲ Co-living long-term lease housing and Moa housing (Jangsu Kim, Director of Seoul Strategic Projects Division)

Next, private sector operators and expert groups presented proposals: Professor Junhyung Kim (Department of Real Estate, Myongji University), Director Deokrye Kim (Korea Housing Industry Research Institute), Director Kyungho Choi (Sucherjakju, former director of the Social Housing Association), CEO Sunghyun Kim (Value First Co., Ltd.), Head Yongguk Joo (Mirae Asset Co., Ltd.), and Adjunct Professor Hangjun Park (Graduate School of Public Administration, Kookmin University, Director of Nurim Economic Development Institute).

Policy experts in this field, Professor Junhyung Kim and Director Deokrye Kim, presented on ‘Issues and restructuring proposals for social housing in Seoul’s public rental housing policy’ and ‘Proposals for private sector participation in public rental housing supply,’ respectively. Following them, social housing expert Director Kyungho Choi presented on ‘Activating a public housing platform to enhance citizen satisfaction.’

Subsequently, field proposals related to financing and other aspects of rental housing projects were made. CEO Sunghyun Kim and Head Yongguk Joo, frontline experts in rental housing project financing, proposed ‘Various incentives to attract private participation in station-area youth housing projects,’ while Adjunct Professor Hangjun Park suggested ‘Introducing a trust system for lease contracts to innovate housing culture.’

Chairman Heegul Kim of the Urban Planning and Management Committee stated, “Expanding housing supply in Seoul and providing stable rental housing to protect vulnerable groups is important,” adding, “Expanding private sector participation in rental housing supply can ensure project sustainability and respond to changing housing demands.”

He also said, “The Seoul Metropolitan Council will spare no policy efforts and support to provide stable homes for vulnerable groups through diverse rental housing supply.”