The government will build an additional 7,700 dwellings in idle land in and around the first-generation new towns, including Bundang, Sanbon, Pyeongchon, Ilsan, and Jung-dong. To address concerns of supply shortages compared to moving demand, 1,500 public dwellings and 2,200 private dwellings will be supplied in Bundang and Sanbon-Pyeongchon new towns, respectively. The remaining 4,000 dwellings are planned to be supplied by discovering two idle sites later.
The Ministry of Land, Infrastructure and Transport announced plans to support relocation to first-generation new towns on the 19th.
The Ministry of Land, Infrastructure and Transport plans to supply 7,700 new public and private dwellings by 2029 by discovering idle land in and around the first-generation new towns. Based on the supply amount of the first-generation new towns (75,000 dwellings), the ministry calculated moving demand (an average annual of 26,000 dwellings) during the maintenance project, determining that additional housing supply is needed particularly in the Bundang, Sanbon, and Pyeongchon areas.
In Bundang New Town, 1,500 public dwellings will be newly built on idle land located between the Seongnam Arts Center and the Central Library. An official from the ministry explained that due to the large-scale relocation effects in 2026 and a temporary supply shortage, there is significant concern about supply and demand issues in 2028 and 2029.
This site, located between Yatap Station and Imae Station, has excellent rail accessibility and is close to the Central Library and the Seongnam Arts Center. The ministry plans to designate a land transaction permit area to block speculative transactions and achieve land purchase agreements and housing construction project approvals, aiming for completion by 2029.
In the Gunpo Dangjeong industrial area adjacent to the Sanbon and Pyeongchon new towns, 2,200 private dwellings will be supplied, and an industrial innovation hub will also be established. Although there are no concerns about housing supply shortages in Sanbon and Pyeongchon, the uncertainty of supply projects has led to the decision to secure additional supply capacity.
The Gunpo Dangjeong industrial area is vacant land already secured by the Korea Land and Housing Corporation (LH). The ministry aims to revitalize aging industrial areas by creating an industrial innovation hub that integrates industry, residence, and culture. It plans to designate it as an industrial innovation zone and an urban innovation zone next year and promote private sales and rental housing supply by the second half of 2029.
Negotiations are currently underway with local governments regarding the two idle sites, each capable of housing 4,000 dwellings. The ministry plans to reveal these two idle sites after completing discussions with relevant agencies and preliminary administrative procedures.
In addition to the first-generation new town maintenance projects, the ministry stated it would accelerate existing housing supply projects such as other maintenance projects, public land, and new acquisition rentals. It intends to expedite the entry timing of public and private maintenance projects by applying a fast-track to reconstruction and encourage early construction by paying 3-5% of the acquisition amount as a down payment.
According to the ministry, approximately 70,000 dwellings will be supplied annually over five years from 2027 to 2031 in and around the first-generation new towns. This figure exceeds the projected moving demand of about 34,000 dwellings annually, and an official from the ministry noted that there will be sufficient supply capacity even in 2032.
Jeong Woo-jin, the urban policy director at the ministry, explained, 'Housing supply will be sufficient for the five years after the relocation to the first-generation new towns begins in 2027,' but he also noted, 'I found that some adjustments are necessary according to the region and timing, so I prepared a new supply plan for idle sites.'
The urban policy director added, 'Even if all first-generation new town maintenance projects proceed at a fast pace from the current point in time, it will be possible to secure enough housing to respond.' He added that 'along with existing maintenance project relocation support, if necessary, the timing of the management and disposal of the first-generation new town maintenance projects and other maintenance projects will be adjusted to disperse moving demand.'