On January 12th, Jin Hyeon-hwan, the First Vice Minister of the Ministry of Land, Infrastructure and Transport, visited a construction site for youth-oriented new construction lease agreements located in Jongno-gu, Seoul. During the visit, he listened to the opinions of officials from the Korea Land and Housing Corporation (LH) and related stakeholders. He pledged to further expand the supply of high-quality housing in prime locations within urban areas.
This project involves entering into purchase agreements* before the construction of private new homes, with LH acquiring them afterward for rental housing. The aim is to supply a total of 210 units, with plans to recruit young tenants after completion by the end of the year.
*Purchase agreements are made before the construction of private new homes, and LH acquires them afterward for rental housing.
This visit marks the first move after the announcement of "Measures to Expand Housing Supply for Stable Housing and Supplementing the Construction Industry" on January 10th. It demonstrates the ministry's commitment to expedite the provision of public rental housing by activating the new construction lease agreement method.
During the meeting attended by LH and construction industry representatives, participants discussed practical difficulties faced during the project, such as the burden of cost increases in construction expenses. They also exchanged opinions on the direction for improving the new construction lease agreement projects.
Vice Minister Jin expressed his determination to expand the new construction lease agreement projects that can swiftly provide quality housing in response to the increasing demand for housing due to the rise of small households, including young individuals and newlyweds.
To achieve this goal, he stated, "We will realisticize the purchase price, significantly expand the volume of purchases, and actively improve related regulations, including expanding various incentives, to promote private sector participation."
After concluding the meeting, Vice Minister Jin emphasized safety measures on construction sites during winter to prevent accidents and urged thorough preparation. He expressed gratitude for the hard work of LH officials, who continue their efforts despite challenging conditions.