Minister Kim Yoon-deok of the Ministry of Land, Infrastructure and Transport announced the 'Housing Supply Expansion Plan' on the 7th, stating, "Through this supply plan, we will supply a total of more than 1.35 million dwellings in the metropolitan area over the next five years by 2030," adding, "This is equivalent to an average of 270,000 dwellings per year, which can be seen as the scale of a new city being created annually."
Minister Kim noted at a press conference immediately after the announcement of the housing supply expansion plan that, "Sufficient housing supply is necessary for the stability of the housing market and for the public's residential stability," and stated that they would provide high-quality public dwellings in areas preferred by the public quickly and continuously.
Regarding the expansion of supply in the metropolitan area, Minister Kim explained, "Public land will be carried out directly by the Korea Land and Housing Corporation without selling housing sites to the private sector," adding, "The key is to boldly increase the supply volume while ensuring a rapid pace of delivery." He also emphasized, "We will work with private construction companies to eliminate the perception that LH apartments have low quality and actively utilize excellent private brands and technologies to create high-quality public dwellings."
He also proposed measures to improve land use efficiency, such as increasing the floor area ratio. Minister Kim stated, "We will convert long-unused or excessively planned commercial land into housing land after review," and pledged to provide clear solutions to chronic delays in the housing land preparation process caused by complicated permit processes and long compensation periods. The government plans to shorten the project period by more than two years and expedite the supply of 45,000 dwellings by 2030.
Concerning public sales, he stated, "We will sell 32,000 dwellings in the third new town and other areas without delay by 2026," and added, "We will also respond proactively to traffic problems to provide convenient living conditions." He further mentioned, "The Seoripul district in the southern part of Seoul and the Gwacheon district will begin construction as early as 2029," stating that "In addition, we will actively proceed with the discovery of 30,000 new land sites in the second half of 2025."
He also revealed plans for housing supply in urban areas with high residential preferences. Minister Kim stated, "We will intensively reconstruct outdated public rental housing built since 1989 in urban areas such as transportation stations at high density," acknowledging, "I am well aware of the criticism that housing supply utilizing idle land and aging facilities has not occurred properly," and added, "We will promote this on a legally and institutionally sound basis that can be effectively advanced through the enactment of special legislation."
Regarding aging public offices or school sites that have not been used for an extended period, he stated, "We will mandatorily review the need for development and expedite supply by having the state grant permits." He revealed plans to actively develop idle sites located in urban areas, such as the Wirye business facility site and the former Gangseo-gu office.
He also presented measures to revitalize public urban complex projects. Public urban complex projects are initiatives led by organizations such as the Korea Land and Housing Corporation or the Seoul Housing and Communities Corporation (SH) to supply high-quality housing and urban functions in deteriorated urban areas where private redevelopment is difficult, such as transit zones and low-rise residential areas. Minister Kim emphasized, "We will abolish the sunset system and expand the floor area ratio to a maximum of 1.4 times," and stated, "We will improve the system to allow urban maintenance projects in aging planned cities like the first new town to be promoted swiftly whenever residents wish."
Minister Kim explained, "Regarding public redevelopment and reconstruction projects, we will increase the floor area ratio and expand administrative and financial support to achieve tangible results." Regarding private maintenance projects, he promised, "We will simplify procedures throughout all phases to shorten the project duration by up to three years," but noted that discussions will be held after public discourse regarding the increase in floor area ratios for private maintenance projects.
Additionally, he announced institutional improvements, such as ▲ easing housing noise standards ▲ easing contributed acceptance criteria for school sites ▲ expanding guarantees from the Korea Housing & Urban Guarantee Corporation (HUG) and providing incentives for early construction ▲ expanding new lease purchases ▲ and activating modular housing.
To establish order in the real estate market and manage demand, Minister Kim revealed plans to push for the establishment of a special judicial police force within the Ministry of Land. He stated, "We will create an investigation and inspection organization involving the Ministry of Land, Financial Services Commission, National Tax Service, Korean National Police Agency, and the Financial Supervisory Service (FSS)," adding, "We will vigorously respond to real estate speculation through expanded planning and tax investigations."
Regarding the land transaction permit zones, he mentioned, "We will expand the designator so that the government can promptly respond to housing market overheating." Currently, if the permit zone is within the same city or province, the mayor or governor has the designation authority; if the permit zone spans multiple cities or provinces or involves a public development project, the Minister of Land has this authority. He stated that if there are concerns about overheating in the housing market or speculation, the Minister of Land will be able to designate permit zones even within the same city or province.
Minister Kim added, "To strengthen the management of housing demand, we will tighten the loan-to-value ratio (LTV) within regulated areas and limit loans to homebuyers and landlords using their homes as collateral in the metropolitan area and regulated areas, while also standardizing the rent loan limit."