Promised to Boost Local Construction, but... LH’s Unsold Home Purchases: Zero in Daejeon, Ulsan, and Gangwon [Real Estate AtoZ]

2,993 Units Purchased, Mostly in Busan and North Gyeongsang
No Purchases in Daejeon, Ulsan, or Gangwon
New Apartments in Double Station Areas Near Seodaejeon and Oryong Stations Also Rejected
Controversy Grows Over Regional Fairness
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Criticism has emerged that the government's ambitious 'Purchase of Unsold Housing Units After Completion' project, launched to boost the local construction market, is deepening regional disparities by disproportionately favoring certain areas. In particular, it was found that in Daejeon, Ulsan, and Gangwon, where thousands of unsold units have accumulated, Korea Land and Housing Corporation (LH) did not purchase a single unit, leading to claims that the project is 'nationwide in name only.'

Assemblyman Yonggap Park. Office of Assemblyman Yonggap Park.

According to data submitted by Assemblyman Yonggap Park (Democratic Party, Jung-gu, Daejeon), a member of the National Assembly's Land, Infrastructure and Transport Committee, LH purchased a total of 2,993 unsold housing units after completion in local regions this year. While purchases were concentrated in areas such as Busan (989 units) and North Gyeongsang Province (641 units), there were no purchases at all in Daejeon, Ulsan, or Gangwon.

The issue is not that there were no purchase applications from these regions. A total of 765 units were submitted for purchase-489 units in Ulsan, 166 units in Daejeon, and 110 units in Gangwon-but LH rejected all of them. The total number of unsold units in Daejeon (2,075 units), Ulsan (2,676 units), and Gangwon (3,179 units), where not a single unit was purchased, is close to 8,000. Of these, 2,594 units are classified as unsold after completion, considered the most problematic.

In particular, even newly built apartments in Daejeon located in so-called 'double station areas' near Seodaejeon Station and Oryong Station failed to pass LH's selection criteria. Despite being in prime transportation locations and having significant potential as public rental housing, questions have been raised as to why these purchases were not approved.

In August, the government pledged to resolve the risk of unsold housing through its 'Supplementary Measures for Regional Construction Markets.' It also announced an increase in the number of unsold units to be purchased after completion from the existing 3,000 to 8,000, raising market expectations. However, there is criticism that, while local construction companies are facing a crisis due to funding shortages, the actual injection of public funds has been heavily concentrated in specific regions.

Assemblyman Yonggap Park pointed out, "Although the government has pledged to revive the local construction market, in reality, regions such as Daejeon, Ulsan, and Gangwon are being excluded, and the imbalance between regions is severe." He added, "In future additional purchases, the government should not simply rely on the number of applications, but should implement balanced administration that considers the unsold housing situation and the ripple effects on the local economy."