LH Establishes Dedicated Team for Metropolitan Area Purchase Rental... Increasing Supply by 10,000 Households

Establishment of Dedicated Team for New Purchase Rental
Additional Supply of 10,000 Households This Year

Korea Land and Housing Corporation (LH) announced on the 24th that it will establish a 'Metropolitan Area Purchase Expansion Strategy Task Force (TF) Dedicated Organization' and a 'Purchase Agreement Support Team' to expedite the promotion of the purchase rental housing project.

Through the expansion and reorganization of these dedicated organizations, LH plans to accelerate the new construction purchase rental housing project. The new construction purchase rental housing method involves LH agreeing in advance to purchase newly constructed houses from the private sector and then acquiring them after completion to supply rental housing.

The government announced on the 17th that it will increase the supply volume of new construction purchase rental housing from 23,000 units at the beginning of the year to 33,000 units to stabilize housing for the middle and low-income classes. Over the next two years, it plans to purchase 120,000 houses and supply them at affordable monthly and jeonse rents.

To achieve the government's policy volume, LH will create a new 'Metropolitan Area Purchase Expansion Strategy TF Dedicated Organization.' The TF dedicated organization is designed to fulfill the metropolitan area purchase targets and activate the construction cost-linked agreement method, which is being introduced for the first time this year. The construction cost-linked agreement method determines the appropriate building construction cost based on the actual design quality of the building from the frame to the finishing materials, rather than on appraisal, and applies to houses with 100 or more units in the metropolitan area.

This organization will be led by Byungwook Ko, Head of LH Housing Welfare Headquarters, and will consist of two teams: the 'Early Construction Support Team' and the 'Purchase Team.' The 'Early Construction Support Team' will also perform consulting tasks related to the review of properties under the construction cost-linked method, preparation of private sector design drawings, and local government permits and consultation procedures.

Additionally, a 'Purchase Agreement Support Team' will be newly established in each metropolitan area headquarters. This team will add a total of 37 personnel to handle everything from housing purchase application reception to quality control in one go.

By deploying additional personnel secured through increased manpower in the first half of this year and internal transfers, LH plans to reduce the duration of project implementation procedures such as design drawing consultations and local government permits.

LH President Han Jun Lee said, "In the rental and monthly lease market, which has been weakened by the real estate recession and rental fraud, it is time to accelerate more than ever so that LH can be a reliable housing safety net," adding, "With the significant strengthening of the organization and manpower, we will carry out government policies without any setbacks."

Meanwhile, LH has increased personnel in the metropolitan area business headquarters, where project volumes are concentrated, to prevent delays in the 3rd New Town development project schedule. In particular, a 'Housing Quality Team' was created in the Namyangju Business Headquarters, where construction volumes are concentrated in the second half among the 3rd New Towns.