Hong Ji-seon, Minister of Land, Infrastructure and Transport, announced plans to strengthen support for the private construction sector to expand housing supply in the metropolitan area. With the private sector responsible for over 80% of housing supply in the region, the government aims to enhance housing projects through regulatory improvements and financial support.
On November 6, the Ministry of Land, Infrastructure and Transport reported that Minister Hong held a meeting at the Seoul Land Development Exhibition Center with representatives from three associations: the Korea Housing Association, the Korea Housing Builders Association, and the Korea Real Estate Development Association, to discuss strategies for increasing housing supply.
Minister Hong stated, "The role of the private sector, which accounts for more than 80% of housing supply in the metropolitan area, is more crucial than ever to resolve the imbalance in housing supply and demand. If there are difficulties on the ground, the government will work closely with the housing construction industry to find solutions."
She emphasized, "To achieve the unprecedented goal of starting construction on over 1.5 million housing units in the metropolitan area over the next five years, we will communicate more actively with the industry and spare no effort in providing necessary support for supply expansion."
The ministry decided to promptly incorporate immediately actionable tasks suggested by the industry, such as amendments to urban renewal laws and the residential use of knowledge industry center support facilities, into policy. Matters requiring discussions with relevant departments, such as tax and financial regulation easing, will be reviewed in subsequent discussions.
In particular, for projects facing difficulties in financing, including project financing (PF), the ministry plans to provide support through the 'Integrated Housing Supply Support Center,' which is set to launch by the end of the year. This center will involve participation from relevant agencies, including the Financial Services Commission and the Financial Supervisory Service, to identify the challenges faced by individual projects and develop tailored solutions.
The industry has evaluated that the easing of construction regulations for urban-type housing, along with the relaxation of financial and tax regulations related to new construction, as well as the conversion of vacant commercial spaces and knowledge industry centers, have had some positive effects on existing supply measures. Additionally, they agreed to continue seeking solutions with the government regarding ongoing issues that hinder housing supply.
* This article has been translated by AI.
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