The South Korean government plans to secure an additional 230,000 homes in the Greater Seoul area, expanding its existing housing supply plans. This initiative includes acquiring new public land and expediting the start of existing projects, such as the third phase of new towns and redevelopment efforts, while also mobilizing urban and non-apartment housing supply.
On August 13, President Lee Jae-myung chaired a senior secretary meeting at the Blue House, stating, "The real estate issue is a ticking time bomb threatening the lives of our citizens and the future of our nation." He noted that since 2022, there has been a significant reduction in permits and construction starts, leading to an unavoidable supply crisis.
President Lee emphasized the need to accelerate the supply process. He urged, "All permit procedures should be shortened as much as possible, and land acquisition should not be hindered by existing regulations. If necessary, we must dramatically secure land by amending laws and systems to boost supply."
On the same day, the government unveiled new supply measures. According to the Ministry of Land, Infrastructure and Transport, the additional supply effect in the Greater Seoul area from this plan is 230,000 homes. This includes 160,000 homes from public land and additional supply through urban development and improvements in private regulations and taxation.
Minister of Land, Infrastructure and Transport Kim Yoon-deok stated, "We will enhance the implementation and speed of existing measures, such as the 9-7 plan, and supply more than 230,000 homes in the Greater Seoul area. We will minimize the time lag between policy announcements and supply."
The government will first announce 100,000 new public housing sites in preferred areas of the Greater Seoul region by the end of the year. Initially, 27,000 homes will be disclosed in three locations: Gangseo in Seoul, Namyangju, and Gwangju in Gyeonggi Province, with an additional 73,000 homes to be announced later this year.
The schedule for existing public land supply will also be significantly expedited. The start of construction for 89,000 homes in the third phase of new towns and other areas will be reduced by one to two years, with 41,000 of those homes originally scheduled to begin after 2031.
The government will also overhaul project procedures. Currently, it takes an average of 68 months from the announcement of candidate sites for the third phase of new towns to the start of construction, but this will be shortened to 37 months, a reduction of 31 months.
Designations for districts will be reduced from 12 months to 4 months, planning from 24 months to 13 months, and land acquisition processes from 44 months to 24 months. A specialized model will also be introduced to allow construction to begin in as little as 21 to 34 months, depending on the proportion of public land and project size.
The government will expedite redevelopment and maintenance projects in urban areas. It aims to support the normal start of 234,000 housing units in the Greater Seoul area by 2030.
The approval rate for redevelopment association establishment will be lowered from 75% to 70%, and the approval rate for public redevelopment and reconstruction project implementers will be eased from 67% to 60%. The re-bidding process will also be simplified if a construction bid fails due to a single bidder.
In the second half of the year, the government will select additional candidate sites for urban public housing projects in Seoul, aiming to start 51,000 homes in the Greater Seoul area by 2030. It will also initiate 4,200 homes in small-scale maintenance projects and push for 140,000 homes in public rental housing by 2030.
Non-residential land within public land will be converted to housing, with a total of 490,000 square meters being repurposed to start 30,000 homes by 2030. Of this, approximately 14,300 homes will be newly identified through this plan.
To expand non-apartment housing supply, the construction area limit for multi-family and multi-household homes will be raised from 660 square meters to under 1,000 square meters, and the number of floors for multi-household homes will be allowed to increase from three to four. The government aims to support the construction of 130,000 general housing units in the Greater Seoul area by 2030 through these regulatory relaxations.
In addition to increasing supply, the government will diversify housing types. About 15% of public sales will be offered in forms that require lower initial payments, such as shared equity or profit-sharing models, and a new universal public rental system will be introduced for long-term residents. Long-term public support for private rentals and universal lease rentals for youth will also be established.
The government will address the "marriage penalty," which disadvantages couples in loans and applications. President Lee stated, "When single, men and women had separate opportunities, but when they come together, it becomes less. This is unreasonable," and called for a comprehensive review of related systems.
The government will change the income requirements for housing loans, such as the Bogumjari Loan, Didiimdol Loan, and Butimok Loan, from a combined couple's income to allowing support if either spouse meets the general income criteria.
President Lee urged that the measures announced should not be seen as final conclusions but should be adjusted according to market conditions. He said, "We must boldly gather opinions from citizens, experts, opposition parties, and the political community to create practical measures that fit the real lives of the people."
The government will also provide financial support to connect supply expansion with actual construction. The public guarantee supply target for HUG and HF will be increased from 23 trillion won this year to 33 trillion won next year, and projects that begin construction early in Seoul and Gyeonggi will receive support for PF interest and guarantee fees. However, the government plans to maintain existing management policies regarding speculative loans, such as LTV and DSR, while releasing funds necessary for housing supply and actual demand.
Minister Kim stated, "To ensure housing stability for the public, it is crucial to establish a solid supply base. We will promptly implement what the public sector must do and boldly support areas where the private sector excels."
* This article has been translated by AI.
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