The Korea Construction Association has urged the Korea Land and Housing Corporation (LH) to improve contract conditions by making project costs more realistic and expanding the autonomy in material selection for public housing projects involving private participation. They also requested an expansion of financial support for LH's rental housing projects and an increase in private sector involvement in the public housing supply process.
On October 22, the Korea Construction Association reported that Chairman Han Seung-gu held a meeting with LH President Lee Seong-hoon at the Seoul Construction Hall to discuss the expansion of housing supply and the challenges faced by the construction industry.
The association proposed that the autonomy of private contractors in the material selection process be guaranteed and that actual increases in project costs be reflected in the overall project budget. They emphasized the need for a reasonable distribution of risks arising from delays in permits and construction starts between the contracting agency and private contractors. They also suggested regularizing a consultative body between LH and the construction industry to continuously address ongoing issues and disputes during the project process.
In relation to the rental housing project, they called for an expansion of financial support to alleviate the financial burden on construction companies. They also urged the development of measures to broaden the scope of participation for private construction firms to increase public housing supply.
LH President Lee Seong-hoon responded that he would actively review and discuss the proposals put forth by the construction association. However, he noted that specific improvements to the system or their implementation timeline have not yet been determined.
The association stated, “We will closely cooperate with LH to respond to the government's housing supply expansion policy and address the challenges faced by the construction industry through necessary system improvements.”
* This article has been translated by AI.
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