Korea Land & Housing Corporation (LH) will not be able to pay into the land bank this year. LH operates a land bank to secure land in advance for public utilities such as roads, parks, and industrial complexes nationwide and, through this bank, stockpiles public land. Also, since 2013, it has set aside part of its profits each year as reserves in the land bank to stockpile funds for public land compensation. But last year, LH posted an operating loss (deficit), leaving it unable to build up land bank reserves.
According to the Land Infrastructure and Transport Committee on the 23rd, the Ministry of Land, Infrastructure and Transport reported to the National Assembly that this year it is unable to deposit money into the land bank under Korea Land & Housing Corporation (LH). In its 2026 public land stockpiling implementation plan, the Ministry of Land, Infrastructure and Transport (MOLIT) said, "Based on the 2025 LH settlement of account, a net loss for the year is expected," adding, "Failure to deposit reserves into the land bank in 2026 is anticipated."
This is the first time in 14 years since the system was introduced in 2013 that LH has been unable to deposit money into the land bank. The land bank carries out a public land stockpiling program that secures land needed for public utilities by compensating in advance in bulk, thereby supplying land to project operators in a timely manner and at low cost. It is mainly used for building roads, parks, and industrial complexes, but it also supplies sites for defense facilities such as airfields and ammunition depots related to cultural heritage projects, and provides land for projects such as KTX station development. Under the Public Land Stockpiling Act and the Korea Land & Housing Corporation Act, since 2023, 40% of LH's profits each year have been set aside as land bank reserves. The current reserve is about 925 billion won.
LH plans to release last year's final settlement of account data within this month. Although the settlement of account has not yet been completed, it was estimated to have recorded an operating loss close to 500 billion won last year. According to the 2025–2029 mid- to long-term financial management plan report released at the 2025 National Assembly audit, LH posted an operating loss of 472.1 billion won last year and is expected to post an operating loss of 449.2 billion won this year.
Yoo Seon-jong, a professor in the real estate department at Konkuk University, said, "LH's losses increased as it spent on housing welfare such as supplying rental housing," adding, "In the Sept. 7 supply measures last year, the policy of directly implementing, rather than selling to the private sector, housing sites in the third new towns was announced, and there is a possibility that the financial situation will worsen further going forward."