[Q&A] Ministry of Land: "Construction to Start Within 2 Years at Most... Accelerating Supply Through Legalization of Land Use Conversion" [Real Estate AtoZ]

Paik Baesung, Director of the Public Housing Promotion Division, Briefs the Press

Paek Baesung, Director of the Public Housing Promotion Team at the Ministry of Land, Infrastructure and Transport's Public Housing Headquarters, is explaining the "Public Sale Supply Plan for Public Housing Sites in the Metropolitan Area" on the 26th at the Ministry of Land, Infrastructure and Transport press room in the Government Sejong Complex. Photo by Choi Seoyoon

What stands out in the "2026 Public Sale Supply Plan for Public Housing Sites in the Metropolitan Area," announced by the Ministry of Land, Infrastructure and Transport on the 26th as a follow-up to the September 7 Measures, is the full-scale implementation of "land use conversion."

While it is important to identify idle urban sites to supply housing, the ministry has determined that converting reserved land within the 3rd new towns-sites with good locations but not yet in use-into residential land is more effective in increasing supply. The core of this policy is to institutionalize this process, enabling systematic and rapid conversions.

The following is a Q&A with Paik Baesung, Director of the Public Housing Promotion Division at the Ministry of Land, Infrastructure and Transport, regarding the supply plan.

-The concept of reserved land is unfamiliar.

▲As the name suggests, it refers to land that has not been pre-designated for a specific use and is set aside. It is established during development planning to accommodate potential changes in industrial or residential demand. There is often a significant time gap between the planning stage and the actual development and supply of a site. At the time of planning, estimates are made for the required amount of residential and industrial land, but these needs may change over time. Therefore, some land is left without a fixed use and supplied according to changing circumstances. Currently, since increasing housing supply is a priority, reserved land is being converted into residential land. For example, in Namyangju Wangsuk (3rd new town) and Paju Unjeong 3 (2nd new town), reserved land is being converted into residential use, while in Suwon Dangsu (a small and medium-sized housing site), land designated for single-family homes is being converted into land for multi-family housing. Construction can begin as early as next year.

-How long does the land use conversion process take?

▲If you find new land, prepare it, and start construction, compensation and other processes take a long time. However, with this method, the land is already prepared, and only its designation is being changed, so much of the groundwork is already done. Since we handle the permit process ourselves after changing the plan, it can be done quickly, and construction can begin within two years at most. The purpose of enacting a separate law is to enable this rapid supply.

-The supply increased by 2,000 households compared to the September 7 Measures. Where did this increase come from?

▲The increase came from Goyang Changneung and Siheung Geomo, and Guri was newly added. Pyeongtaek and Yangju saw reductions. As detailed designs are developed, the number of households in each block is adjusted slightly. There have been concerns that rental units are too small, so we are working to increase the average unit size, but due to restrictions such as floor area ratio, the total number of units may decrease.

-Which housing complex will be the first to announce its sale?

▲Most of the 3rd new town supply will be announced in March next year. Goyang Changneung, Incheon Gyeyang, and Namyangju Wangsuk will be among the first in March.

A total of 29,000 households will be supplied in public housing sites in the metropolitan area next year. The map shows the locations of the 2nd and 3rd new towns as well as small and medium-sized housing sites. Ministry of Land, Infrastructure and Transport

-When is the expected move-in date?

▲Generally, it takes about three years from the sale announcement to move-in. In the past, it took about two and a half years, but stricter safety standards have extended construction periods. For high-rise apartment buildings, it may take even longer.

-Godeok Gangil is the only site in Seoul. Is there a possibility of additional supply?

▲In Godeok Gangil, there are parcels where the use has not been finalized or where supply has been delayed due to negotiations with local governments or the education office. Discussions are underway to convert unused school sites into residential land, but since nothing has been finalized, we have not made an official announcement. There are also ongoing efforts to relocate sports facilities and convert those sites into residential land, so additional supply is possible. Even in the year-end supply, there will be units in Seoul, including Magok.

-Can you provide information on the expected sale prices?

▲Sale prices are determined by the Sale Price Review Committee. It is difficult to predict the prices in advance. What is certain is that they will be set within the price ceiling system.

-Does the supply figure of 29,000 public sale units for next year include rental units?

▲No, it does not. The 29,000 units refer to units for sale. The press release specifically states "public sale," meaning these are sale units. Rental units will be recruited separately.

-Have any new public housing sites been identified in the metropolitan area?

▲This is a confidential matter, so I cannot answer. Leaking information about candidate sites could lead to speculation and other negative consequences, and there are strict penalties, so I must refrain from commenting.