The measures include tax and financial incentives, the easing of regulations and a reduction in supply of new housing units to keep prices from falling, the Ministry of Land, Infrastructure and Transport said in a press release.
The Park Geun-hye administration, inaugurated in February, came up with the measures as the country's real estate market has suffered one of the worst downturns, adversely affecting the nation's economy.
According to the ministry, the number of unsold new homes nationwide reached 73,000 as of late February and prices of homes have continued to dip.
The ministry said in consideration of such a deteriorating situation, it will cut the number of new public housing units from the current 70,000 per year to 20,000.
In addition, it said it will encourage people to buy homes, by offering tax incentives and financial aid.
For instance, households with an annual income of 60 million won or less will be exempt from the acquisition tax when they purchase a house with floor space of 85 square meters or less, which is worth 600 million won or less.
Also included in the measures are doubling the amount of government mortgage fund from 2.5 trillion won to 5 trillion won, and lowering the annual interest rate on the mortgage loans from the current 3.8 percent to 3.3-3.5 percent.
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