LH Increases Statutory Capital by 15 Trillion Won to Accelerate Housing Supply

Passage of the Construction Act Amendment Bill in the Plenary Session

Yonhap News

Korea Land and Housing Corporation (LH) announced that the amendment to the Korea Land and Housing Corporation Act, which increases the statutory capital from 50 trillion won to 65 trillion won by 15 trillion won, passed the National Assembly plenary session on the 14th.

This amendment was primarily proposed by Kwon Young-jin, a member of the People Power Party. It is a livelihood bill aimed at stabilizing housing for socially vulnerable groups and victims of jeonse fraud, and was processed through bipartisan agreement.

LH has been receiving government investment for part of the construction and acquisition costs while promoting public rental housing projects. As of this month, LH’s cumulative paid-in capital amounts to 48.7 trillion won, and it is expected that the paid-in capital will exceed the statutory capital in the first quarter of next year.

To stably implement policies for national housing stability, including the government’s plan to supply 1 million public housing units, expansion of newly built and acquired rental housing under the 8.8 measures, and purchase of housing for victims of jeonse fraud, it was urgent to amend the Corporation Act to increase LH’s statutory capital. Without an increase in statutory capital, additional government investment cannot be made, which could lead to an expansion of losses in the rental housing business.

With the passage of this amendment to the Corporation Act in the National Assembly plenary session, a foundation has been established to stably promote the supply of public rental housing. It is also expected to help improve LH’s financial soundness, such as reducing the debt ratio, as the actual paid-in capital increases following government investment.

Lee Han-jun, President of LH, said, “The amendment to the Corporation Act for the stable supply of public rental housing was promptly processed through bipartisan agreement,” and added, “Since the foundation for expanding housing supply to stabilize housing for the homeless and low-income citizens has been established, we will focus on completing key policy tasks assigned to LH, such as expanding housing supply and strengthening support for housing-vulnerable groups.”