Request for Additional 152 Billion Won in Supplementary Budget
for Housing Support for Wildfire Victims
Plan to Add 1,000 Units of Purchase-Rental Housing
The government has requested an additional 150 billion won in the supplementary budget to support housing for wildfire victims, marking the largest-ever wildfire damage in history. The plan is to provide rental housing to those who have lost their homes immediately, but there are concerns about its effectiveness. Most affected local governments do not have rental housing available, and even if new rental units are built, it will take several years for residents to move in. This means there is no immediate solution for those who have lost their homes. In addition, many local governments are already providing modular temporary housing, raising questions about how the government will utilize the substantial budget.
According to the supplementary budget and fund operation plan under the Ministry of Land, Infrastructure and Transport, the budget for supplying purchase-rental housing to wildfire victims has increased by 152 billion won as of April 24, 2025. Of this, 80 billion won is allocated for loans, and 72 billion won for equity investment. The plan is to increase the supply of multi-family purchase-rental housing for seniors from the existing 2,000 units to 3,000 units.
Purchase-rental housing is a system in which the Korea Land and Housing Corporation (LH) or local governments purchase homes and rent them out at less than half the market price, mainly targeting urban areas. This can involve buying existing homes and renovating them, or acquiring homes under construction or planned by the private sector through pre-arranged contracts for rental purposes.
In Hahwa 1-ri village, Danchon-myeon, Uiseong-gun, Gyeongbuk, where a wildfire has devastated the area, the remains of burnt houses are left unattended. Photo by Yonhap News
However, in the case of new purchase-rental housing, it typically takes about two to three years before residents can actually move in. This pace is too slow to provide immediate support for wildfire victims. The time required to build new rental housing may be longer than it would take for victims to repair or rebuild their own homes. At the previous day's Land, Infrastructure and Transport Committee plenary session, Representative Son Myungsoo of the Democratic Party of Korea also pointed out that new purchase-rental projects take a considerable amount of time.
If existing homes are purchased and allocated to wildfire victims, this could provide immediate housing support. However, in most areas severely affected by the wildfires, there are almost no homes already secured as purchase-rental units. There was little reason to secure such housing in these areas due to low demand. Some have pointed out that even if the government mobilizes a large budget to supply rental housing for wildfire victims in a timely manner, there may be no clear use for these homes once the victims move out in the future.
According to the National Assembly Budget Office's analysis of the supplementary budget proposal, among the affected areas, only Andong City was found to have a stock of purchase-rental housing, with 412 units. In the other five county-level local governments?Uiseong, Cheongsong, Uljin, Yeongdeok, and Yeongyang, including Uiseong-gun in North Gyeongsang Province, which suffered significant damage?there were none at all.
The government operates the purchase-rental housing program only in areas with a population above a certain threshold (80,000 people). While Andong City has a population of about 150,000, each of the other five regions has fewer than 50,000 residents. The National Assembly Budget Office noted, "The Ministry of Land, Infrastructure and Transport has stated that it will apply more flexible guidelines to the purchase-rental housing program by revising the fund operation plan, allowing for purchase-rental housing even in less populated areas and actively securing new units."
However, the office also pointed out, "In the case of new purchase-rental housing, considering the time required for construction, it is questionable whether timely housing support can be provided for victims who need urgent assistance." Another concern is that, due to the lack of rental housing in most wildfire-affected areas, victims may have to live far from their main living areas. This would mean being separated from schools or workplaces, and it would also make it more difficult to participate in recovery efforts.
The National Assembly Budget Office also noted that the government's comprehensive disaster victim response, led by the Central Disaster and Safety Countermeasures Headquarters, should be taken into account. Since temporary housing is expected to be provided soon, there is a possibility that the budget could be duplicated or go unused. North Gyeongsang Province and the relevant cities and counties have already set plans to provide a total of 2,679 prefabricated and modular housing units for wildfire victims by the end of next month. However, some argue that rental housing offers a higher level of residential quality and stability compared to temporary shelters.
The report stated, "It is essential to closely and quickly assess the housing support needs of wildfire victims during project implementation and to secure housing inventory in the desired regions and formats." It further emphasized, "The government and local authorities should strengthen cooperation to ensure that victims can maintain basic aspects of daily life, such as education and employment, and consider tailored support that reflects the specific needs of wildfire victims."
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