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Korea Land and Housing Corporation (LH) has selected Daewoo E&C as the final developer for the Pyeongtaek Godeok A-56BL private participation public dwelling construction project. Accordingly, LH's private participation public dwelling construction projects are set to achieve a scale of 5 trillion won in this year alone.

According to LH on the 19th, the Daewoo E&C consortium was selected as the private developer for the Pyeongtaek Godeok A-56BL, surpassing Namkwang Construction. Daewoo E&C formed a consortium with Dongbu Construction, Umi Construction, and Heunghan Housing Comprehensive Construction to participate in this project.

The Pyeongtaek Godeok A-56BL project involves developing a site of 68,783 square meters into a maximum of 25 stories with 1,499 dwellings (with a gross area of less than 60 square meters). The estimated project cost (private) is around 401.2 billion won. This complex is set to be developed as a zero-energy and soundproofing specialized certified site.

Cases of LH collaborating with private developers for public dwelling projects are increasing. The private participation public dwelling project has grown to a scale of 5 trillion won this year alone. The private participation projects involve LH and other public implementers jointly supplying public dwellings. Private developers establish a cooperative body with LH to carry out these projects. The private developer purchases LH's public land and is responsible for implementation, construction, and sales.

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LH actively collaborates with private developers because it allows for the provision of various public dwellings utilizing technological capabilities and branding. The participation of private developers can also mitigate negative perceptions regarding the quality and branding of public dwellings. Additionally, it enables public support to invigorate the sluggish private economy.

LH plans to expand its private participation public dwelling projects next year. To stimulate the stagnant private construction market in the third new towns, it has increased the volume of private participation housing construction projects to 13 blocks with 10,319 dwellings. An LH senior official noted, "Last week, we held a meeting with construction companies to explain the private participation public dwelling projects for next year" and explained, "We plan to continue the private participation public dwelling projects next year, even more than this year."

The government also intends to grow the private participation public dwelling projects. This is a form of changing the way the private participation public dwelling projects are conducted. While LH has effectively monopolized the public dwelling construction sector, this approach opens it up to private construction companies. A public housing special law amendment allowing private construction companies to be designated as public dwelling developers is expected to pass the National Assembly.

Accordingly, the Ministry of Land, Infrastructure and Transport recently commissioned a research project titled "Stable operation plan for the Housing and Urban Fund upon the introduction of private public dwellings" and has begun seeking specific measures for executing private standalone public dwelling projects. This research project aims to establish detailed execution plans for private construction companies participating in public dwelling projects. Additionally, it will derive measures to minimize fund losses, such as the credit evaluation methods and collateral arrangements for private construction companies receiving loan support from the Housing and Urban Fund.