Vice Minister Choi Sang-mok, who also serves as Minister of Economy and Finance, emphasized, "We will actively support the spread of modular construction methods and the high value-added transformation of the construction industry" and noted, "We will improve the loan support system."
On the afternoon of the 7th, Vice Minister Choi visited the largest cluster of modular dwellings located in the Sejong Administrative Complex Urban Living Zone 6-3 (UR1·UR2) to inspect the site and made this statement. He decided to pursue system improvements to enable dual loans for energy-saving materials (10%) and modular construction methods (10%).
Vice Minister Choi said, "Constructing dwellings using modular construction methods is a good example of introducing innovative technology to increase productivity in the construction industry, which is facing a structural crisis of declining productivity, and contributing to resolving chronic challenges such as labor shortages in the industry."
He also added, "In the case of dwellings applying modular construction methods, we plan to actively negotiate to ensure that the 'Housing Act revision bill,' which relaxes the floor area ratio compared to existing reinforced concrete methods, can pass the National Assembly."
Modular construction methods involve pre-manufacturing more than 70% of components at factories and assembling them on-site, allowing for mass production while minimizing on-site work. There are advantages such as an average reduction of 20-30% in construction time, improved productivity, consistent construction quality, alleviation of labor shortages in the construction industry, and reduction of safety accidents.
The government has stepped up to invigorate the domestic modular dwelling market, which is still in its early stages. According to the Korea Iron & Steel Association, the domestic modular dwelling market has grown from 32.4 billion won in 2019 to 805.9 billion won in 2023, but it is still at an early stage.
The government has expanded the order volume for public rental modular dwellings from 1,000 units last year to 2,000 units this year, with plans to increase it to 3,000 units after 2026.
To this end, the government is providing an additional 10% loan support from the housing & urban fund for the construction of public rental dwellings using modular construction methods. In addition, to foster the private sector modular dwelling industry, it is supporting the development of off-site construction (OSC) methods like modular construction and research and development activities.