Yoon Duk-kun, the Minister of Land, Infrastructure and Transport, announced plans to accelerate the construction timelines for major housing districts, including new towns, and to expand housing supply in urban areas. This initiative comes as housing prices and rental rates continue to rise in Seoul and the surrounding metropolitan area, with the government prioritizing supply expansion as a key task for the second half of the year.
During a report to the National Assembly's Land, Infrastructure and Transport Committee on August 11, Yoon stated, "We will create a South Korea where everyone can live without worrying about housing." He added that the ministry would expand the conversion of non-residential land to residential use and identify new candidates for public housing complex projects in urban areas.
The Ministry of Land, Infrastructure and Transport is pursuing measures to shorten the construction timelines for major public housing sites, including new towns, by 1 to 2 years. The ministry aims to expedite urban supply through intergovernmental cooperation in areas like Gwacheon and Taereung, and is also reviewing support for relocation and streamlining procedures for construction projects.
Additionally, the conversion of long-vacant commercial and office spaces to residential use will be expanded. The ministry plans to announce new candidates for urban complex projects in Seoul in the second half of this year and will also seek additional housing supply candidates, including school sites in urban areas.
Reforms at the Korea Land and Housing Corporation (LH) will also be a key part of the supply policy. The ministry is considering options for LH to directly supply housing or lease land for industrial use instead of selling developed land to the private sector, with plans to establish a reform plan for LH by next month to ensure efficient and sustainable operations.
The housing market remains unstable, particularly in the metropolitan area. According to the ministry's report, the change in apartment sale prices in Seoul in June was 1.21%, significantly higher than the national average of 0.40%. The change in rental prices for apartments in Seoul also recorded 1.37%.
Transactions are heavily concentrated in Seoul, with approximately 8,000 apartment sales recorded in June, 1.3 times the 10-year average of 6,100. In contrast, regional markets continue to face unsold inventory issues, diverging from trends in the metropolitan area.
Supply indicators are also a concern. The cumulative number of permits and construction starts in the metropolitan area from January to June this year is similar to the same period last year but falls short of long-term averages. The volume of completed constructions has dropped significantly, down 52.4% compared to last year and 45.9% compared to long-term averages, reflecting the impact of previous declines in construction starts.
Yoon emphasized, "We will expedite the construction of major districts, including new towns, and expand housing supply in urban areas through relocation support for redevelopment projects." He also stated that affordable public rental housing will be provided in prime urban locations, and conditions for young people to access public housing will be improved.
Measures to stabilize the rental market will also be implemented. The ministry plans to manage tenants' deposits through a rental stabilization fund, allowing landlords to earn monthly income through a trust program, which will be launched in the second half of the year. A one-stop support system for victims of rental fraud will also be established in line with the implementation of a minimum guarantee system for victim support.
Railway service reforms are also set to accelerate. The ministry aims to complete the integration of Korail and SR ahead of schedule by next month. This month, a unified app will be developed to allow simultaneous booking of KTX and SRT tickets, with plans for full integration of high-speed rail operations starting next month. Yoon stated, "We will complete the integration of Korail and SR by next month."
Efforts to prevent illegal and unethical practices have been highlighted as a major task. The ministry plans to focus on issues such as real estate agent cartels, corruption in redevelopment associations, violations of residency requirements, speculative practices for compensation, and fragmented development. Measures will also be taken to enhance penalties for electronic voting manipulation in redevelopment projects and to expand joint inspections, along with collaboration with the Real Estate Supervisory Agency.
Construction safety and worker protection will be strengthened. The ministry will review safety management systems before demolition work, mandate video recording of key construction processes, and enhance accountability at all stages of construction. A real-time monitoring system linking construction contract information and payment data will be established to prevent illegal subcontracting and payment delays.
Yoon concluded by stating, "We will create advanced corporate cities to connect corporate investment with regional growth and expedite the second relocation of public institutions," emphasizing the importance of balanced development. This report comes ahead of the announcement of new supply measures, highlighting the ministry's comprehensive approach to addressing market instability, LH reforms, railway integration, and enhanced construction safety, making the speed of policy implementation in the second half of the year crucial.
* This article has been translated by AI.
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