LH to Promote Approximately 90,000 Private Partnership Housing Projects Over 5 Years... 12,000 Units to Be Supplied This Year

Establishment of 'Minkan Cooperation Project Group' and Promotion of Public Offering for CM Projects
Improving Public Housing Quality by Applying Private Technology and Brands

[Asia Economy Reporter Cha Wanyong] Korea Land and Housing Corporation (LH) announced on the 26th that it plans to promote about 90,000 housing units over the next five years, including 12,000 units this year, through private collaboration projects. This aims to improve the quality of public housing by applying private sector technology and brands.

LH headquarters building exterior. [Photo by LH]

To this end, LH has established a ‘Private Collaboration Project Team’ and plans to proceed with public contests for private participation and construction responsibility-type CM projects to supply 12,000 units this year.

Additionally, LH has created the ‘Private Collaboration Project Activation Plan,’ which includes 9 tasks across 3 sectors to further strengthen public-private cooperation.

First, to increase private developers’ participation in projects, construction costs will be adjusted to reflect reality. The standard construction cost will fully incorporate inflation, and other construction costs such as sales expenses will also be included.

LH will also promote quality improvement of public housing by utilizing excellent private technologies. In particular, specialized plans addressing residential issues such as reducing heating costs in winter and minimizing noise between floors will be reflected in the evaluation criteria for public contests, expanding the application of advanced private technologies.

Furthermore, LH plans to actively collaborate with the private sector to improve the quality and image of public housing by applying popular private brands preferred by the public to public rental housing and granting design autonomy.

To enhance the profitability of private projects and mitigate risks, LH will also boost private sector vitality. For example, if private financing is difficult due to delays in recovering sales proceeds, LH will prioritize providing funds to the private sector within the recovered sales proceeds and settle interest after completion, creating a stable project environment.

LH will sufficiently reflect the opinions of private construction companies regarding the inflation rate applied to the standard construction cost and plans to prepare detailed implementation plans for each task by March. From April onward, project briefing sessions will be held, and public contests for private participation projects will be conducted in earnest.

Lee Takhoon, Head of LH’s Public Housing Business Division, said, “We will do our best to create a stable business structure where the public and private sectors win-win as business partners and supply high-quality public housing by actively utilizing private technology.”

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