LH to Approve 100,000 Housing Units This Year to Prevent Housing Supply Instability

Announcement of Work Plans for 5 Major Sectors and 11 Key Tasks
Focus on Resolving Supply Instability and Revitalizing the Construction Market

Korea Land and Housing Corporation (LH) plans to resolve housing supply concerns this year by pushing for housing permits for over 100,000 units and starting construction on more than 50,000 units. Additionally, it will invest 18.4 trillion won to support the revitalization of the construction industry and manage the smooth landing of real estate project financing (PF) and potential risks.

Korea Land and Housing Corporation (LH) Headquarters Building / Photo by LH

On the 13th, LH announced that it has finalized a work plan containing '5 major sectors and 11 key tasks' focused on strengthening its public functions. In particular, to accelerate policy tasks, additional field personnel will be deployed to regional headquarters. A dedicated department for project schedule management will also be established to prevent cost increases and construction delays.

To supply 'more housing more quickly,' LH aims to secure housing permits for 105,000 units and start construction on over 50,000 units this year. This is to establish a stable housing supply base amid reduced private sector housing supply due to high interest rates and rising raw material costs. The Yoon Seok-yeol administration’s public sale housing project 'New:Home' will have more than 69,000 units permitted to serve as a residential ladder for the public, and the five 3rd New Towns will accelerate their development schedules with the goal of starting construction on all within the year.

For public rental housing, 65,000 units (34,000 purchased units and 31,000 jeonse lease units) that can be quickly supplied in urban areas will be provided to support housing stability for vulnerable groups. This is an increase of more than 10,000 units compared to last year’s plan. Included are 5,000 purchased rental units to support victims of jeonse fraud.

LH will also take the lead in revitalizing the construction industry. It plans to invest 18.4 trillion won, which accounts for 29% of the public institution investment plan this year. Especially, 65% of this will be executed early in the first half of the year, the highest level ever, to supply liquidity to the market. To ensure the smooth landing of real estate PF and manage potential risks, a dedicated organization led by the vice president will be formed, and the acquisition process for PF project sites will be expedited.

The LH innovation plan, which focuses on preventing recurrence of poor construction and restoring public trust, will be implemented in a timely manner. Accordingly, the authority to select public housing design, construction, and supervision companies will be smoothly transferred externally, with management to prevent any gaps in ordering during this process. To strengthen responsibility for structural design, a 'joint contract method' for architectural and structural design will be introduced, and poor construction will be eradicated through a two-step verification involving internal and external experts.

Furthermore, the average size of public housing complexes starting construction this year will be expanded from 57㎡ to 68㎡ of exclusive area, and for New:Home, the floor thickness will be increased from the existing 21 cm to 25 cm to improve public housing quality. From next year, all new housing will apply the highest grade (Grade 1) standards for inter-floor noise. Companies applying off-site construction (OSC) methods such as modular and precast concrete (PC) will receive additional points to reduce construction errors.

The work plan also includes customized housing service provision measures to respond to low birth rates and aging. LH has approved a pilot project for an 'Idolbom Cluster' in the Gosan district of Uijeongbu, Gyeonggi Province, in September, which will concentrate child care, medical, and cultural facilities. For retirees in their 50s and 60s, the 'Healthcare REITs Silver Town' pilot project in Dongtan 2 district, Hwaseong City, will proceed with business operator selection in April.

LH President Lee Han-jun said, "As the public role is more important than ever this year, LH will strive to reduce housing worries for the public and enhance economic vitality through rapid and bold public housing supply and investment execution."