"LH Unlocks 19 Trillion Won in Projects as a 'Kickstarter' for Economic Recovery"

13.2 Trillion KRW Invested in the Seoul Metropolitan Area Including the 3rd New Towns and Yongin National Industrial Complex

This year, Korea Land and Housing Corporation (LH) will initiate construction orders totaling 19.1 trillion KRW. This is the largest amount ever, and LH expects to play a catalyst role in revitalizing the sluggish domestic construction market.

According to LH on the 24th, the total number of construction orders to be placed this year is 787, amounting to 17.8 trillion KRW. Service contracts total 663 cases, worth 1.3 trillion KRW. Last year, LH set a record by placing orders worth 17.8 trillion KRW, and it is expected to surpass this record within a year.

By region, more than two-thirds of the total, 13.2 trillion KRW, will be spent in the Seoul metropolitan area where housing demand is concentrated. The costs for the 3rd new towns?Namyangju Wangsuk 1 and 2 (996.9 billion KRW), Incheon Gyeyang (790.5 billion KRW), and Hanam Gyosan (450.5 billion KRW)?alone amount to 3.5 trillion KRW, accounting for 18% of the total. The construction of the Yongin National Industrial Complex, estimated at around 2.4 trillion KRW, will also be ordered within the year.

As the domestic construction market has declined due to the housing market slump, the government has repeatedly announced plans to actively inject public funds to resolve this. In line with this, LH has decided to advance the timing of investment execution. It plans to achieve 23% of the annual order volume in the first quarter and about 59% by the first half of the year. LH is responsible for 21.6 trillion KRW, about one-third of the total investment plan of public institutions this year, and is expected to play a leading role in boosting economic vitality.

Aerial view of Namyangju Wangsuk District. Provided by Korea Land and Housing Corporation

About 65% of the total order plan, 12.6 trillion KRW, will be used for the commencement of public housing construction, including building works and apartment ancillary works. A budget of 1.2 trillion KRW has been allocated for technical service orders related to public housing projects. Ninety percent of the total service orders are related to public housing. By evaluation type, the comprehensive evaluation bidding system accounts for 12.5 trillion KRW, qualification evaluation 2.9 trillion KRW, and others 3.7 trillion KRW in descending order.

Lee Han-jun, President of LH, said, "With increasing internal and external uncertainties, there are concerns about expanded volatility in the housing market and a high possibility of supply-demand imbalance if supply conditions worsen. Since we have allocated the largest volume of orders ever, we will execute them with a sense of urgency."