The Government Employees Pension Service (GEPS) will move to purchase post-completion unsold (so-called malignant unsold) dwellings in provincial areas with a budget of 10 billion won. It plans to buy unsold apartments and supply them as rental dwellings to government employees without homes. Mostly younger government employees are expected to benefit from the rentals. Some say, however, that it is inappropriate for the Government Employees Pension Service, which faces a pension depletion crisis and receives several trillion won in treasury subsidies each year, to spend a large sum to buy even malignant unsold apartments in the provinces.
The Government Employees Pension Service is a quasi-governmental agency under the Ministry of Personnel Management, established in 1982 to promote the stability and welfare of current and former government employees and their survivors. It is primarily funded by employee contributions (9% of the standard monthly income) and contributions from the state and local governments, with any shortfall covered by state subsidies.
According to the real estate industry on the 27th, the Government Employees Pension Service issued a notice on the 23rd and is proceeding with the purchase of post-completion unsold dwellings in provincial areas from construction and development companies. Eligible properties are currently completed (use approved) unsold dwellings, including apartments, officetels, and urban lifestyle dwellings, with exclusive areas of 60 square meters or less and at least 20 units per complex.
Target areas with dwellings are 15 cities and counties nationwide, including Gangneung, Wonju, and Chuncheon in Gangwon; Muan, Mokpo, and Suncheon in South Jeolla; Gunsan, Iksan, and Jeonju in North Jeolla; Asan, Cheonan, and Hongseong County in South Chungcheong; and Jecheon, Cheongju, and Chungju in North Chungcheong.
Real owners such as construction and development firms, and sales agencies authorized by owners, can visit the Housing Department of the Government Employees Pension Service in Yeoksam-dong, Seoul, or submit the required documents by registered mail to request a purchase by Apr. 10.
The agency plans to purchase dwellings with a budget of 10 billion won this year. It will select complexes to acquire after document and on-site due diligence of sale applicants and a review by the housing purchase evaluation committee. The purchase price will be set by applying the discount rate submitted by the sale applicant to the appraised value. The planned purchase period is between July and August.
This project is intended for the Government Employees Pension Service to supply rental dwellings to government employees without homes. Since 2020, the agency has spent around 10 billion won each year on acquiring rental dwellings. A GEPS official said, "It is a project to support housing for government employees working outside the greater Seoul area where government employee rentals are lacking, especially younger and early-career employees without homes." The plan is to buy unsold dwellings to supply low-priced rentals to government employees working in the provinces. The total number of dwellings purchased to date is 475 units.
Lee Eun-hyung, a research fellow at the Korea Institute of Construction Policy, said, "For central government ministry staff who do not have official residences, it allows the supply of rental dwellings at stable prices without worrying about rising rents, and for construction and development firms, it provides a channel to clear unsold dwellings, so it is a plan where both sides can benefit."
Some, however, argue that it is inappropriate for the Government Employees Pension Service, which has posted large losses and requires annual treasury subsidies, to take on even unsold apartments. They say it is necessary to carefully assess whether this project incurs losses or generates profits. The pension reserve for government employees is already depleted and is being operated with treasury support. According to the Government Employees Pension Service, since the first subsidy in 2001, the amount has continued to rise, reaching 587.66 billion won in 2023, and 747.12 billion won was injected in 2024. The treasury subsidy injected in 2025 has not yet been tallied, but it is expected to be close to 1 trillion won.
Ahn Dong-hyun, a professor in the Department of Economics at Seoul National University, said, "Since the government employees' pension continues to run a deficit, we should check whether this project generates profits or results in losses." Seok Jae-eun, a professor in the Department of Social Welfare at Hallym University, also said, "In a situation where the fund continues to be covered by the treasury to maintain it, the pension buying unsold apartments does not appear to be a project suited to its purpose."