Minister Kim Yoon-deok of the Ministry of Land, Infrastructure and Transport said on the 19th regarding the public housing project with private-sector participation that "we will prepare a variety of incentives that can expand construction companies' participation."
The Minister visited the site of "Wirye Xi The City," a public housing project with private participation in Changok-dong, Sujeong-gu, Seongnam, Gyeonggi Province, and said, "As the Korea Land & Housing Corporation (LH) abolishes the private-sale method and shifts to a contract-type public housing project with private participation, corporations are trying hard to take part."
The public housing project with private participation, introduced in 2012, is a public-private partnership model in which the public and the private sector jointly serve as project operators: the public provides land, while private construction firms shoulder construction costs and take charge of design and building to construct their own brand-name apartments.
LH has fully adopted this model since 2014 and pushed forward projects totaling 100,000 households through this year. In particular, the Ministry of Land, Infrastructure and Transport said industry response has been strong, with 24,000 households in 2024 and 30,000 households this year.
Under the Sept. 7 measures, the government plans to push 53,000 households of LH direct-execution supply in the form of private-sector participation by 2030.
Wirye Xi The City, which the Minister visited today, is a "social mix" (Social Mix) complex built so that various social groups can live together by a GS Engineering and Construction joint supply group (consortium) selected through a public offering in May 2020. Centered on public-sale dwellings, it is an 800-household complex that began move-ins in March 2023.
The Minister said, "I was impressed by the excellent design and specialized facilities that rival those of private apartments," adding, "This is an important case where the stability of the public sector meets the technological prowess of the private sector to change the cold perception of public housing and build social trust."
Noting in particular that major builders within the top 100 in construction capability evaluation showed a high participation rate of 94.1%, the Minister said, "In a situation where the private construction market is contracting, projects with private participation will proceed swiftly under LH's responsibility and will greatly help revitalize the construction economy."
Regarding GS Engineering and Construction's strong intention to participate, the Minister said, "The government will also continue to communicate with the industry and prepare a variety of incentives that can expand construction companies' participation."
In addition, the Minister held a tea meeting with residents that day to ask about their impressions of living there and to hear suggestions on items needing improvement.