Announcement of 'Regional Construction Market Supplementary Measures' at Livelihood Economy Inspection Meeting
"Additional Sections Selected for 4.3 Trillion Won Railway Undergrounding Project"
Choi Sang-mok, Acting Prime Minister and Minister of Strategy and Finance, said on the 19th, "The Korea Land and Housing Corporation (LH) will directly purchase about 3,000 unsold apartments after local completion, and we will consider expanding the purchase scale depending on market conditions."
Acting Prime Minister Choi stated this during his opening remarks at the 'Livelihood Economy Inspection Meeting' held at the Government Seoul Office on the same day, adding, "We will strengthen support for the recovery of the local real estate market, including resolving unsold housing."
He emphasized, "Due to the decline in orders centered on local areas, investment and employment in the construction sector have been sluggish for a long time," and added, "As part of the first quarter livelihood and economic response plan, we will support the recovery of the local construction industry."
He said, "Incentives will be provided to financial institutions that expand local mortgage loan handling, and the scope and rate of application of the three-stage Stress Debt Service Ratio (DSR) will be decided between April and May, considering the real estate market situation," and "Preferential interest rates will also be newly established for Didimdol loans when purchasing unsold houses after local completion."
To expand regional development projects, he said, "We will promote a railway undergrounding project worth a total of 4.3 trillion won in Busan, Daejeon, and Ansan, and promptly select additional project sections."
Acting Prime Minister Choi said, "Next week, we will select regional strategic projects where exceptions to the total amount of Greenbelt release apply, and for the Yongin semiconductor industrial complex, we will start compensation within the first half of the year to begin construction in 2026 and swiftly establish related infrastructure."
To expand investment in social overhead capital (SOC), he said, "We will invest about 260 billion won by 2027 to enhance aviation safety, including introducing bird detection radar at 15 airports nationwide and improving azimuth facilities at seven airports."
To this end, the government plans to execute 70% of the SOC budget, the highest level ever, within the first half of the year.
The cost realization plan announced last December will be expanded to apply to construction projects ordered by local governments and local public institutions, which account for more than half of public construction projects.
Acting Prime Minister Choi added, "We will announce improvement measures for responsible completion next month, such as differentiating the debt assumption ratio according to the responsible completion period when promoting project financing (PF) projects," and "In line with the implementation of the fast-track reconstruction bill in June this year, we will improve reconstruction safety inspections and maintenance plan requirements, and closely cooperate with the National Assembly for the prompt enactment of the Reconstruction and Redevelopment Promotion Act."
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