A budget of 23 trillion won will be allocated to supply 194,000 public dwellings next year. Rental houses for vulnerable groups such as the youth, newlyweds, and the elderly will be supplied with a focus. To concentrate on expanding rental housing, the government drastically cut the budget allocated for loans for sale housing and policy financing such as the First Home Program and the Bridge Loan.
A budget of 8.5 trillion won will be allocated to support the recovery of the construction industry, including the metropolitan area express train (GTX) and the construction of a new airport.
The Ministry of Land, Infrastructure and Transport announced on the 2nd that it has organized a budget proposal of 62.5 trillion won for 2026 to support national traffic safety, housing and transportation livelihood stability, and balanced development. This is a 7.4% increase (4.3 trillion won) from this year's budget proposal and is the largest budget ever organized. It accounts for 8.6% of the government's total expenditure of 728 trillion won.
◇Expansion of public rental housing… Increase in newlywed supply to 31,000 households
A budget of 22.8 trillion won will be allocated for the expansion of public housing to stabilize the housing conditions of the working class. This is an increase of 6.3 trillion won compared to last year's 16.5 trillion won. The government's target for public housing supply next year is 194,000 households.
The Ministry of Land, Infrastructure and Transport plans to focus on expanding rental housing targeted at the youth, newlyweds, and the elderly. In particular, to reactivate the low birth rate, the supply of public rental housing for newlyweds will be increased by 3,000 households from this year to 31,000 households. A public rental model focusing on childcare will also be established at 10 locations.
In particular, the budget allocated for purchased rental housing has significantly increased. According to the Ministry of Land, Infrastructure and Transport's 2026 housing & urban fund operation plan, the proposed budget for rental housing support (loan) is 14.4584 trillion won, which is a 15.9% increase (1.9804 trillion won) compared to last year. The budget for rental housing support (investment) has also increased by 182.4% to 8.3274 trillion won, an increase of 5.3782 trillion won compared to the previous year. The increase in the rental housing support budget is due to an increase in financial input for multi-family purchased rental housing projects.
An official from the Ministry of Land, Infrastructure and Transport stated, "The new purchase rental housing budget was executed in three installments over three years, but to expedite housing supply, it has been changed to two installments." He added, "The increase in the budget is due to the change in execution methods, not an increase in the quantity."
The Ministry of Land, Infrastructure and Transport has embarked on a strong expenditure restructuring to implement key projects such as the expansion of rental housing. The scale of expenditure restructuring is 6.7 trillion won. Of this, the budget for loans for sale housing and policy loan support has decreased by nearly 5 trillion won. The budget for sale housing loans is now 427 billion won, reduced by 71% (1.0446 trillion won) compared to last year. The budget for the First Home Program and Bridge Loan has been cut by 26.7% to 10.3016 trillion won (3.7556 trillion won).
Instead of directly supporting the budget for policy loans, the Ministry of Land, Infrastructure and Transport plans to utilize bank resources to execute loans. The budget for secondary subsidies for this purpose has increased by 7.2% (132.2 billion won) to 1.972 trillion won compared to the previous year.
An official from the Ministry of Land, Infrastructure and Transport noted, "In the case of loans for sale housing, there is a commitment to supply rental housing to vulnerable groups," and added, "During this government, we will lean more towards rental than sales." He continued, "We plan to support policy loans through secondary subsidies utilizing bank resources."
◇8.5 trillion won invested in GTX and new airport construction
A budget of 8.5 trillion won will be allocated for the expansion of major transportation networks, including the construction of GTX, high-speed and regular national roads, and the construction of 8 new airports, including the airport on Gadeokdo. Among this, 436.1 billion won has been earmarked for the timely opening of GTX. Investment in planned rail routes such as the KTX from Incheon and Suwon, and the extension of the Donghae Line to Buk-Ulsan Station will amount to 4.4 trillion won.
In the road construction sector, an investment of 3.1 trillion won has been allocated for 21 new construction projects scheduled for next year, including the Jecheon-Yeongwol Expressway, and for 188 ongoing projects. A budget of 1 trillion won has also been reflected in the budget for the construction of 8 new airports, including Saemangeum and Gadeokdo, considering the conditions for execution.
In particular, the Ministry of Land, Infrastructure and Transport will allocate a budget to strengthen the safety system in the land and transportation sectors. To enhance aviation safety, 120.4 billion won has been allocated for bird strike prevention, runway incursion prevention systems, and securing safety zones. Additionally, 3.1 billion won has been allocated for improving defense facilities. For safety in the road and rail sectors, 25 trillion won and 20.9 trillion won will be invested, respectively. A budget of 4.4 billion won has been allocated for expanding ground penetration equipment for high-risk subsidence areas and supporting local governments' own exploration budgets.
To alleviate the burden of public commuting on citizens, support for reducing public transportation costs and easing inconveniences in public transport will be strengthened. The public transportation cost refund support program (K-Pass) will be significantly increased to 527.4 billion won, an increase of about 300 billion won compared to last year. This will introduce a "fixed-rate pass" to ease the pass cost burden on the youth and the elderly.
To invest in balanced national development as part of the '5 poles and 3 specials' strategy announced by the Lee Jae-myung government, local governments will autonomously organize a national budget subsidy account expanded by 500 billion won to 1.3 trillion won. This will allow local governments to autonomously prepare budgets for aging industrial complex regeneration projects, urban renewal projects (partially), smart city expansion projects (partially), public-private regional cooperation agreements, and support for coastal and inland development projects.
Moon Seong-yo, Deputy Minister of Planning and Coordination at the Ministry of Land, Infrastructure and Transport, stated, "Through strong expenditure restructuring, we have reduced wasteful expenditures and have significantly strengthened investment in projects that citizens can feel the effects of," and added, "We will do our best to ensure that the first budget of the Ministry of Land, Infrastructure and Transport under a citizen-led government can serve as a genuine catalyst for growth."