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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The government's ambitious "purchase of unsold homes after completion" project, launched to stimulate the local construction market, is facing criticism for deepening "regional disparities" as it is concentrated in specific areas. In particular, it was found that in Daejeon, Ulsan, and Gangwon, despite thousands of unsold homes piling up, Korea Land and Housing Corporation (LH) has not purchased 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 of Korea, Jung-gu, Daejeon), a member of the National Assembly's Land, Infrastructure and Transport Committee, LH purchased a total of 2,993 unsold homes 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. Applications were submitted for a total of 765 units: 489 in Ulsan, 166 in Daejeon, and 110 in Gangwon. However, LH rejected all of them. The total number of unsold homes in Daejeon (2,075 units), Ulsan (2,676 units), and Gangwon (3,179 units) amounts to nearly 8,000 units. Among these, 2,594 units are classified as "adverse" unsold homes after completion.

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 screening. Despite being situated in transportation hubs and having significant potential as public rental housing, questions are being raised about why the purchases were not made.

In August, the government promised to resolve the risk of unsold homes through its "Supplementary Measures for the Regional Construction Market." It announced plans to expand the purchase of unsold homes after completion from the existing 3,000 units to 8,000 units, raising market expectations. However, there are concerns that, while local construction companies are on the brink of collapse due to funding shortages, public funds are being disproportionately allocated to certain regions.

Assemblyman Yonggap Park pointed out, "The government has pledged to revive the local construction market, but in reality, regions such as Daejeon, Ulsan, and Gangwon are being left out." He added, "The imbalance between regions is at a serious level." He further emphasized, "In the future, during additional purchase processes, the government should not simply rely on the number of applications submitted, but implement balanced administration by considering the unsold home situation and the ripple effects on the regional economy."