LH Sets 17.9 Trillion Won in Orders for This Year... Housing Sector Accounts for 68%

Korea Land and Housing Corporation (LH) announced on the 25th that it has set this year's construction and service procurement plan at 17.8839 trillion won.

The plan covers a total of 1,515 cases, including 15.8222 trillion won for construction and 2.0617 trillion won for services. Procurement plans related to housing projects account for around 68% of the total amount. Building construction comes to 8.7 trillion won, and ancillary construction such as electrical, telecommunications, and fire protection works amounts to 3.3 trillion won.

There will be 402 cases worth a total of 13.5 trillion won subject to the simplified comprehensive evaluation system for projects with an estimated price of 10 billion won or more, and the comprehensive evaluation bidding system for projects of 30 billion won or more. For projects subject to the qualified screening process with an estimated price of less than 10 billion won, there will be 966 cases totaling about 3.3 trillion won.

Provided by Korea Land & Housing Corporation

This procurement plan has been structured around the Seoul metropolitan area and the third new towns to support large-scale public housing supply in the capital region. Approximately 12.8 trillion won, or 71% of the total plan, will be spent on projects related to the third new towns, including Namyangju Wangsuk in the Seoul metropolitan area and Incheon Gyeyang. Regions outside the metropolitan area will receive about 5.1 trillion won.

LH has decided to directly carry out housing projects instead of selling off development sites. It plans to push ahead as scheduled so that sufficient supply can be provided early by speeding up project execution. For major large-scale apartment construction projects that attract strong interest from the construction industry, LH plans to closely manage the procurement schedule on a monthly or quarterly basis.

Cho Kyungsook, Acting President of LH, said, "We have established this procurement plan to ensure that we achieve our target of starting construction on 52,000 public housing units without delay and to provide stable project volumes to the sluggish construction market," adding, "Through timely procurement and thorough schedule management, we will deliver outcomes that the public can tangibly feel."