"We are working to shed the image that public dwellings are bad or cheap, so that people can feel and recognize in every respect—quantitatively, qualitatively, and in terms of location—that these are truly high-quality dwellings worth living in. That is an important housing-welfare policy of our government."
Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport said this on the afternoon of the 28th while visiting a youth-oriented newly built purchased rental dwellings operated by the Korea Land & Housing Corporation (LH) in Yeonji-dong, Jongno-gu, Seoul. That day, the Minister visited the rental dwellings in person to examine the housing quality and spent time communicating with the young residents. They discussed the housing conditions young people want and appropriate levels for rental terms.
Located a five-minute walk from Jongno 5-ga Station, this dwellings is considered a representative youth-customized dwellings with a large community space, built-in furniture, and half-price rent. The application competition rate announced in June last year was 40 to 1, and a refrigerator, washer, air conditioner, microwave, desk, and chair are included as built-in furniture. While nearby market rates are a 10 million won deposit with a monthly rent of 1 million won, this place is effectively half-price at a 1 million won deposit with a monthly rent of 490,000 won.
The Ministry of Land, Infrastructure and Transport plans to expand the scale of newly built purchased rentals while managing quality in this way. According to the Ministry of Land, Infrastructure and Transport and the Korea Land & Housing Corporation (LH), the number of newly built purchase agreement signings in 2025 came to 53,771 units, six times the 2023 total of 9,253 units. Of these, 89.3% (48,036 units) are in the greater Seoul area. LH accounts for 43,519 units, and local public corporations for 4,517 units. The number of newly built purchase agreements in Seoul is 14,621 units.
Based on this record-high volume of secured agreements, the Ministry of Land, Infrastructure and Transport plans to break ground this year on more than 44,000 newly built purchased dwellings in the greater Seoul area, including 13,000 in Seoul. Through this, it plans to steadily push ahead with the plan presented in the Sept. 7 plan to expand housing supply: 70,000 units to start construction in the greater Seoul area in 2026–2027 and a total of 140,000 units to start construction in the greater Seoul area by 2030.
In addition, LH will recruit tenants this year for 11,000 purchased rental dwellings in the greater Seoul area (including 3,000 in Seoul) and plans to supply about 60% of them to young people and newlyweds.
At the same time, the Ministry of Land, Infrastructure and Transport (MOLIT) has formed an investigation committee centered on outside experts in connection with suspicions of overpriced purchases of rental dwellings and is conducting a full review of past purchases through April. Earlier, President Lee Jae-myung said during a MOLIT policy briefing in Dec. last year, "There is a rumor that a $100,000 house is being built and sold to LH for rental dwellings at $120,000. They are taking LH for a sucker," ordering a large-scale joint investigation by MOLIT and LH. However, the Ministry of Land, Infrastructure and Transport said it will proceed with the investigation under the principle of "conducting the investigation and supply in parallel" so that the signing of purchase agreements and groundbreaking are not hindered.
The Minister said, "The more challenging the housing market, the more important it is for the public sector to provide a clear supply of new units through tangible results," adding, "If last year was a 'year of preparation' that set a record-high agreement total, this year will be a 'year of execution' through groundbreaking on at least 44,000 units in the greater Seoul area and 13,000 units in Seoul."
Acting LH President Cho Kyung-suk said, "The 11,000 units for which agreements were signed last year in Seoul are located in excellent sites with proven living infrastructure, such as near subway stations, and will have high satisfaction among end users," adding, "We will take the lead in stabilizing the housing market through sequential groundbreaking and timely supply based on thorough quality control."