The government will promote "modular dwellings" to speed up the supply of dwellings. It plans to supply next year's purchased rental dwellings as modular dwellings and overhaul systems to support the industry. The modular dwellings market is expected to begin in earnest, and builders are preparing to enter the market.
According to the Ministry of Land, Infrastructure and Transport on the 12th, the government plans to push a pilot project next year to use modular dwellings for the purchased rental dwellings program. By the first half of next year, it plans to prepare design and construction guidelines for modular purchased rental dwellings and a plan for calculating purchase prices.
Modular dwellings are dwellings assembled on-site by transporting modular spaces such as pre-fabricated rooms, kitchens, and living rooms made in factories. Compared with the conventional method of stacking bricks one by one on-site, the construction period can be reduced by up to 50%. With fewer on-site workers, the risk of industrial accidents decreases, and construction quality is uniform. However, construction costs are higher than under conventional building methods.
The ministry plans to prioritize creating modular purchased rental dwellings on sites in the Seoul metropolitan area where module transport and installation are possible. Considering the high construction costs, it will start by applying them to low-rise dwellings. The government will also review the need for bulk orders to lower module unit prices. Modular purchased rental dwellings are expected to be applied to about 160,000 households.
Starting with this, the government also plans to enact the "off-site construction (OSC) and modular special act" to expand modular dwellings. An official at the ministry said, "Through the special act, we will establish modular-tailored standards and quality control systems and ease various on-site construction-centered regulations," adding, "We will resolve the high-cost structure by strengthening incentives."
With the government signaling a pilot project to spread modular dwellings, the construction industry is also preparing to expand related businesses. XiGEIST, a modular architecture subsidiary of GS Engineering and Construction, recently received recognition from the ministry for industrialized dwellings. The ministry operates a system that pre-certifies the structure and performance of industrialized dwellings, such as modular dwellings that manufacture all or part of a building in a factory according to certain performance standards.
While XiGEIST is currently focusing on modular detached dwellings, it obtained recognition for industrialized dwellings for multifamily dwellings up to 18 stories, leaving open the possibility of expanding into apartments.
A Samsung-branded modular dwelling is also preparing for launch. Samsung Electronics on the 8th showcased a smart modular home at IFA 2025 held in Berlin, Germany. It combined Samsung Electronics' artificial intelligence (AI) home solution with a modular dwelling produced by Samsung C&T's construction division.
DL E&C also completed a modular detached-dwelling, town-type complex in Gurye, South Jeolla, in 2023. An official in the construction industry said, "The domestic modular dwellings market is still in its early stages compared with overseas," adding, "Although the expense is still higher than with conventional dwelling construction methods, if the government leads and grows the market, it could become a new revenue source for builders."