Gyeongbuk Province to Build 700 Public Rental Homes of 15 to 25 Pyeong by 2026... Offered at Half Market Price to Newlyweds and Others

Construction Companies Purchase After Completion
Targeting Cities and Counties with Populations Under 80,000

Gyeongsangbuk-do announced on the 28th that, as part of the ‘War on Low Birthrate’ implementation tasks, it will promote public rental housing as a new supply method to reduce the burden of securing stable housing for young people and newlyweds and to alleviate the burden of childcare after childbirth.

Earlier this year, Gyeongbuk Province declared a ‘War on Low Birthrate’ to respond to the dual challenges of low birthrate and aging population, which threaten regional extinction, and is carrying out about 100 implementation tasks.

Gyeongbuk Provincial Government Office

Among these, to drastically reduce the burden of securing stable housing, which is cited as a major obstacle to marriage and childbirth for young people and newlyweds, an innovative supply plan for public rental housing has been prepared.

Gyeongbuk Province is seeking a major transformation in housing culture through the promotion of public housing policies aimed at overcoming the regional extinction crisis by successfully establishing new initiatives that realize a housing culture without housing burdens or generational concentration.

In the Gyeongbuk area, there are about 37,000 public rental housing units operated by public housing providers, of which about 95%, or 35,000 units, are managed by the Korea Land and Housing Corporation (LH).

The Korea Land and Housing Corporation focuses on expanding quantitative supply mainly of small-sized units (under 50㎡) to alleviate housing vulnerability, based on the principle of supplying public rental housing within urban areas with populations over 80,000 nationwide.

However, relying solely on public rental housing supply led by the Korea Land and Housing Corporation presents limitations for Gyeongbuk, where 15 cities and counties are experiencing population decline, making it difficult to resolve the extensive blind spots in housing welfare. Additionally, the housing supplied in urban areas is limited to small-sized units, making it challenging to meet the housing demands of young people and newlyweds.

Accordingly, Gyeongbuk Province, together with the Gyeongbuk Development Corporation, decided to supply public rental housing targeting cities and counties with populations under 80,000 where LH supply is insufficient, and introduced for the first time the ‘New Construction Contract-type Purchase Public Rental Housing’ supply method through proposals from private developers, with the Gyeongbuk Development Corporation as the implementing body.

In the case of new construction contract-type purchase public rental housing, after selecting a preferred negotiator through a private developer proposal contest and consulting with them, the Gyeongbuk Development Corporation agrees to purchase the land and building in full after completion, while the private developer is responsible for completing the construction.

This method can advance the move-in time by more than two years compared to construction-type public rental housing, enabling rapid supply where there is demand for public rental housing, as well as raising expectations for revitalizing the local construction industry.

Gyeongbuk Province aims to supply a total of 700 units to cities and counties with demand by 2026.

In 2024, it plans to supply 200 units in five cities and counties (Yeongju, Yeongcheon, Cheongdo, Yeongdeok, and Goryeong). As of October, Cheongdo, Yeongcheon, and Goryeong have completed agreements with private developers and are preparing to proceed with approval procedures, with tenant recruitment expected to begin as early as the end of 2025.

Baek Yong-su, Director of the Construction and Urban Bureau of Gyeongsangbuk-do, said, “We will realize a public housing policy that helps young people and newlyweds settle in the region by supplying attractive public rental housing that can become a source of housing pride beyond welfare, and by establishing community facilities such as care and start-up spaces for all local residents along with housing supply, leading to the recovery of village communities.”