[2024 National Audit] LH President Lee Han-jun: "LH Will Bear the Increased Sale Price Due to Main Subscription Delay"

Application of Public Sale Housing from Main Subscription in November

On the 24th, Lee Han-jun, President of Korea Land and Housing Corporation (LH), announced that even if the main subscription is delayed, the sale price will be calculated based on the main subscription date announced at the time of the preliminary subscription. He explained that LH will bear the increase in the sale price that occurred between the announced main subscription date and the actual main subscription date for the winners.

Lee Han-jun, President of Korea Land and Housing Corporation (LH). Photo by Hyunmin Kim kimhyun81@

During the comprehensive audit of the Ministry of Land, Infrastructure and Transport by the National Assembly's Land, Infrastructure and Transport Committee on the same day, when Kim Eun-hye, a member of the People Power Party, asked, "Have you prepared measures regarding the sale price issue of public preliminary subscriptions?" Lee replied, "In principle, LH is responsible for the increase in sale price during the delay period of the main subscription."

He added, "If the main subscription is postponed, the sale price will be calculated based on the main subscription date originally promised at the time of the preliminary subscription."

This will be applied starting from the public housing main subscriptions announced next month.

Recently, for the Incheon Gyeyang A2 Block with a net area of 84㎡, the confirmed sale price was 584.11 million KRW, which is 90.24 million KRW (18%) higher than the estimated sale price of 493.87 million KRW at the time of the preliminary subscription.

As the main subscription was delayed and the sale price increased, 40% of the preliminary subscription winners in this area gave up on the main subscription.

For Incheon Gyeyang A3 Block as well, the estimated sale price announced in July 2021 for a net area of 55㎡ was 339.8 million KRW, but the confirmed sale price rose by 60 million KRW to 401.01 million KRW, causing about half of the preliminary subscription winners to forgo the main subscription.