LH Announces Private Developer Recruitment for 'Regional Win-Win Housing Development REIT' in Guri Galmae and Chungnam Seocheon

Korea Land and Housing Corporation (LH) announced on the 9th that it will hold a public contest for private developers of the ‘Regional Win-Win Housing Development REITs,’ which simultaneously promote apartment construction and sales projects in the metropolitan area and single-house projects for return-to-farm and rural migration in provincial areas.

The Regional Win-Win Housing Development REITs is a project in which the REIT, as the project implementer, combines assets from both the metropolitan and provincial areas into a single business structure. Profits generated from the metropolitan apartment land project are cross-subsidized to the return-to-farm and rural migration housing project in the provinces, which is difficult to promote due to low profitability, thereby sharing profits and contributing to balanced regional development.

LH 'Local Win-Win Housing Development REIT' Project Structure.
[Photo by LH]

The contest sites include the S1 block apartment land near Guri-Galmae Station in the metropolitan area and the return-to-farm and rural migration housing land located in Hansan-myeon, Seocheon, Chungnam Province.

First, the Guri-Galmae Station apartment land is located between Namyangju Byeollae District and Guri-Galmae Public Housing District, with construction scheduled to begin in the second half of 2025, followed by recruitment of residents, and move-in planned for the second half of 2027.

The return-to-farm and rural migration housing in Seocheon County, Chungnam Province, is scheduled for move-in in 2026. After a four-year lease at below-market prices, it will be converted to sale, easing the settlement burden for those wishing to return to farming or migrate to rural areas.

The contest participants are private developers consisting of consortia formed by financial institutions and construction companies. Financial institutions must have a capital of at least 100 billion KRW or total equity of at least 300 billion KRW, and construction companies must be registered housing construction business operators under the Housing Act.

Participation is limited to no more than two companies each from construction and financial sectors, and consortia formed by construction companies ranked within the top 10 in construction capability evaluation are not allowed.

LH plans to receive letters of intent from August 26 to 28, accept project applications on September 8, and select the preferred negotiation candidate within September.

An LH official stated, “The Regional Win-Win Housing Development REITs is significant in that it secures project momentum through collaboration among project participants, including LH’s project management, private developers’ sharing of development profits, and local government support, and also contributes to balanced regional development.”