Minister Kim Yoonduk: "Providing Homes People Want to Live In"

Visit to Wirye Xi The City, a Private Participation Public Housing Complex

As the government announced its intention to cooperate with private construction companies to address concerns over the quality of Korea Land and Housing Corporation (LH) apartments, Kim Yoonduk, Minister of Land, Infrastructure and Transport, visited an LH apartment complex on September 19 that was designed and built by a private construction company.

On this day, Minister Kim visited the private participation public housing complex "Wirye Xi The City" in Seongnam, Gyeonggi Province, toured the facilities, and stated, "I am impressed by the excellent design and specialized amenities, which are on par with those of private apartments." He added, "This is an important example of how the stability of public housing and the technical expertise of the private sector can come together to change the perception of public housing and build social trust." Wirye Xi The City is a complex of 800 units constructed by a GS Engineering & Construction consortium, with residents moving in since March 2023.

Kim Yoonduk, Minister of Land, Infrastructure and Transport, is speaking at a tea meeting attended by residents and officials at the private participation public housing complex "Wirye Xi The City" in Seongnam-si, Gyeonggi Province on the 19th. Ministry of Land, Infrastructure and Transport

The private participation public housing project was introduced in 2012. Under this public-private partnership model, LH provides the land, while private construction companies invest in construction costs and are responsible for design and construction, building apartments under their own brands. LH began to fully implement this project in 2014 and has pushed for a total of 100,000 units through this year. The goal is to supply 24,000 units this year and 30,000 units next year.

Minister Kim stated, "Through the private participation public housing project, LH can reduce its financial burden, while the private sector can minimize business risks such as unsold units. This delivers a 'triple benefit' by enabling the supply of high-quality public housing to the public."

Minister Kim also emphasized, "The participation rate among construction companies ranked within the top 100 in construction capability evaluations has been high at 94.1%." He continued, "At a time when the private construction market is shrinking, private participation projects, promoted swiftly under LH's responsibility, will greatly help revitalize the construction industry. We will prepare various incentives to encourage more construction companies to participate."

According to the September 7 policy measures, the government plans for LH to implement 53,000 units directly as private participation projects by 2030.

Kim Yoonduk, Minister of Land, Infrastructure and Transport (far left), is talking with on-site officials at the private participation public housing "Wirye Xi The City" in Seongnam, Gyeonggi Province on the 19th. Ministry of Land, Infrastructure and Transport

During his meeting with residents, Minister Kim stated, "The government is not simply focused on building 'a large number of houses,' but rather on creating 'homes people want to live in.' We will prioritize quality and safety management as we build high-quality public housing." He also said, "As the number of social mix complexes increases, the Ministry of Land, Infrastructure and Transport and LH will jointly review and improve relevant institutional measures."

Meanwhile, the LH Reform Committee, launched last month, is holding meetings twice a week to discuss overall reform tasks, including the direct implementation plans for LH under the September 7 measures. The committee also plans to gather public feedback through a national advisory group and other channels.