Nation's First REIT-Based "Jemulpo Station North Side Urban Public Housing Complex Project" Set to Begin in Earnest

by Park Haesook

Pubilshed 08 Jul.2025 10:18(KST)

The nation's first urban public housing complex project to adopt the REITs (Real Estate Investment Trusts) model is set to move forward in earnest.

Incheon Urban Corporation (iH) announced on July 8 that the designation of the project operator for the "Jemulpo Station North Side Urban Public Housing Complex Project" has been changed from iH to a joint operation between iH and a REIT (Jemulpo Station Urban Complex Project Entrusted Management Real Estate Investment Company), following approval for the change in complex district designation and project plan.

As a result, iH will obtain a REIT business license from the Korea Real Estate Board, which is under the Ministry of Land, Infrastructure and Transport. The corporation plans to begin compensation procedures and design work next year, with construction scheduled to start in December. Completion is targeted for 2031.

Aerial view of the Jemulpo Station North Side Urban Public Housing Complex Project. Incheon Urban Corporation

The Jemulpo Station North Side Urban Public Housing Complex Project is a policy initiative promoted under the "Public-Led 3080+ Housing Supply Expansion Plan" announced by the Ministry of Land, Infrastructure and Transport in 2021. The project will supply 3,497 public housing units across 99,000 square meters in Dohwa-dong 91-1, Michuhol-gu, aiming to promote balanced development in the old downtown area and improve residential conditions.

A REIT is a nominal company that pools funds from multiple investors to invest in real estate and distributes profits. iH, which also serves as an AMC (Asset Management Company), will be entrusted with asset management by the REIT, which is a joint project operator. iH will be responsible for raising funds, acquiring, managing, disposing of, and liquidating real estate assets, thereby effectively leading the project.

By introducing the REIT model, iH expects not only to secure the public interest of the project, such as returning development profits to landowners, but also to reduce financial risks from external factors such as inflation and interest rate hikes, enabling more efficient project implementation.

Ryu Yunki, President of iH, stated, "This project is the first case of simultaneously realizing both the public interest and efficiency of an urban public housing complex project through joint implementation by a local public corporation and a REIT. Going forward, we will actively introduce various financial techniques such as REITs to further strengthen our financial soundness."