The number of public rental housing units left vacant and not leased for more than six months has surpassed 58,000. Unleased public rental housing has more than doubled compared with five years ago. Rental income losses also nearly reached 330 billion won.

Officials from the Citizens' Coalition for Economic Justice (CCEJ) chant slogans on Sept. 17 at the CCEJ auditorium in Jongno District, Seoul, before announcing the results of their analysis of Korea Land & Housing Corporation (LH) purchased rental housing. CCEJ says LH's purchased rental program wastes tax money by focusing on buying expensive new housing. /Courtesy of Yonhap News

According to data submitted by Democratic Party of Korea lawmaker An Tae-jun, a member of the Land Infrastructure and Transport Committee, from the Korea Land & Housing Corporation (LH) on 14th, as of Jul. this year, there were 58,448 public rental housing units unleased for more than six months. This is a 135% increase from 24,820 units in 2020.

Rental income losses from unleased public rental housing totaled 328.9 billion won over five years. Last year, the annual loss exceeded 70 billion won for the first time, and this year, more than 60 billion won in losses had already occurred by Jul.

Public rental housing is classified into construction-type built directly by LH and purchase-type acquired from existing dwellings, and both saw higher unlease rates. The unlease rate for construction rentals rose by 2.9 percentage points (p), from 2.3% in 2020 to 5.2% in Jul. this year, while purchase rentals increased by 0.5%p, from 3.3% to 3.8%.

The complex with the most vacancies is Naun Complex 4 in Gunsan, North Jeolla, where 599 out of a total of 1,954 units have been vacant for more than six months. In Dangjin Seongmun Complex 3 in South Chungcheong, 328 out of 696 units are also vacant.

An's office explained that these complexes are classified as low-preference among prospective residents due to poor locations and a lack of infrastructure.

An Tae-jun said, "Supplying new public rental housing is important, but it is necessary to minimize unlease rates in existing complexes," adding, "Through site improvements, expansion of social infrastructure, and community building, we should convert them into high-quality public rental housing that people want to live in."

In response, LH said, "We will pursue quality improvements that the public can feel by expanding living space in excellent locations and creating outdoor spaces on par with for-sale housing, as well as preventing floor noise," adding, "We also plan to enhance dwelling quality through facility improvements such as remodeling of aging public rentals to minimize vacancies caused by dwelling aging."

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