Promotion of Industrialized Housing Activation... Public Orders Target of 3,000 Units by 2030

Ministry of Land, Infrastructure and Transport Develops Roadmap for Supplying Industrialized Housing
Promotes Incentives and Regulatory Improvements

The government is taking steps to create an industrial ecosystem to revitalize the industrialized housing market.

The Ministry of Land, Infrastructure and Transport announced on the 31st that it plans to implement a supply roadmap for industrialized housing by improving regulations and providing incentives to activate the supply of industrialized housing and promote the spread of advanced construction technologies such as modular construction methods.

A modular housing complex, 'Yongin Yeongdeok Gyeonggi Happy Housing' in Yeongdeok-dong, Yongin-si, Gyeonggi Province. [Photo by Hyundai Engineering]

Industrialized housing constructed using the OSC method, one of the smart construction technologies, has many advantages such as shortened construction periods, improved construction quality, and reduced safety accidents. It is emerging as an icon of innovation in the housing construction industry in countries like the UK and Singapore.

However, in Korea, due to the relatively small volume, the construction cost is higher compared to the existing reinforced concrete (RC) method, limiting the widespread adoption of industrialized housing without public support.

Accordingly, the Ministry of Land, Infrastructure and Transport plans to provide incentives to improve the business feasibility of industrialized housing, improve existing regulations considering the characteristics of the construction methods, and gradually expand the volume of public rental housing orders to continuously expand the market.

Public ordering institutions will establish annual order plans aiming for 3,000 units per year by 2030 to ensure the sustainability of the industrialized housing market and induce voluntary private investment and technological development. Starting with 658 units this year, the plan is to expand to 1,000 units next year and 1,500 units in 2025.

In addition, comprehensive improvement measures will be prepared to reflect the characteristics of industrialized housing in various construction procedures such as design and supervision. Standards for fire resistance, eco-friendly building certification systems, and incentive regulations will be improved to apply to industrialized housing as well.

Yoo Hye-ryeong, Director of the Housing Construction Supply Division at the Ministry of Land, Infrastructure and Transport, said, “Modular and other OSC methods contribute to rapid housing supply even amid aging construction workforce and rising labor costs, and can accelerate the advancement and eco-friendly transition of the construction industry. We will support expanding the supply of industrialized housing centered on the public sector to revitalize the domestic market.”