Byeon Chang-heum "Housing Supply Through Public-Private Partnership Fast Track"... "New Public Housing Sites Also Planned"

Presiding Over Video Conference with Housing Supply-Related Agencies
Gathering Opinions on Expanding Urban Housing Supply Measures

On the 5th, Byeon Chang-heum, Minister of Land, Infrastructure and Transport (center), is presiding over a video conference with agencies related to housing supply at the Government Sejong Complex. (Provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] The government announced plans to establish a fast-track system through public-private cooperation to expand housing supply in downtown Seoul, along with initiatives such as station-area redevelopment and designation of new public housing sites.

On the 5th, Byeon Chang-heum, Minister of Land, Infrastructure and Transport, held a video conference with housing supply-related agencies and stated, "It is of utmost importance to swiftly supply a sufficient quantity of high-quality and affordable housing in locations preferred by demanders."

To this end, the Ministry of Land, Infrastructure and Transport presented five basic principles for the housing supply measures to be announced before the Lunar New Year holiday: ▲ fast-track through public-private cooperation ▲ sufficient supply through available land in downtown and public housing sites ▲ high-quality housing supply linked to living infrastructure, innovation spaces, and jobs ▲ concentrated supply of housing preferred by demanders ▲ appropriate distribution of development gains and preemptive blocking of speculative demand.

Under the fast-track through public-private cooperation, each party shares roles to promote housing supply. The central government is responsible for establishing housing supply measures and improving laws and systems; local governments support procedures such as permits, resident consultations, and ordinance improvements. Public institutions such as Korea Land and Housing Corporation (LH) act as real estate development developers and coordinators by providing consulting and securing sites, while sharing risks through upfront investments. Additionally, private construction companies supply high-quality housing through creative design and construction, and experts support feasible business models and planning.

Regarding this, Minister Byeon said, "I understand there are concerns that the approach is solely public-led and focused on rental and public-owned housing," and emphasized, "We will focus on supplying sale housing in downtown areas that the public desires through public-private cooperation."

As a specific plan, Minister Byeon proposed utilizing available land in downtown areas such as station areas and public housing sites. He also stated that existing sites such as public housing sites, schools, and public institution lands will be maximally utilized, and in addition, new public housing sites will be designated.

To this end, Minister Byeon said, "We will provide strong incentives such as risk reduction and simplification of permit procedures through public-private cooperation to the private sector, enabling not only profitability but also rapid project promotion." However, regarding development gains, he emphasized appropriate distribution based on social consensus and indicated plans to significantly expand community facilities and transportation infrastructure using development gains.

The Ministry of Land, Infrastructure and Transport also expressed a willingness to improve in response to criticisms that only public housing detached from actual demand is supplied. The policy is to focus on sale housing supply and to supply public-owned and public rental housing in a mixed manner considering location conditions to secure consumer choice.

President Moon Jae-in and Minister of Land, Infrastructure and Transport Byun Chang-heum attended the "Desirable Rental Housing" briefing held last month at the Dongtan public rental housing complex, commemorating 1 million LH rental housing units in Hwaseong-si, Gyeonggi Province. [Image source=Yonhap News]

At the meeting, related organizations such as the Korea Housing Association and the Korea Housing Builders Association also participated and proposed tasks for system improvement. They suggested the need to improve the high-priced sale price review system of the Housing and Urban Guarantee Corporation (HUG), urban regulation improvements to expand downtown housing supply, and tax and financial support related to rental housing.

In response, Minister Byeon expressed a willingness to ease various regulations. He said, "We will complete existing tasks without fail, such as relaxing floor area ratio (up to 700%) through district unit plan establishment in areas with convenient transportation, easing minimum residential ratio in location regulation minimum zones, and establishing institutional grounds for public reconstruction height increases," adding, "We will also look into additional regulatory improvements such as actively designating special architectural zones."

The event was attended by representatives from Seoul City, Gyeonggi Province, LH, HUG, Seoul Housing and Communities Corporation (SH Corporation), Gyeonggi Housing and Communities Corporation (GH), as well as heads of related organizations including the Housing Association, Housing Builders Association, and Korea Real Estate Development Association.

This content was produced with the assistance of AI translation services.