LH Establishes 2025 Business Plan to Stabilize Public Housing and Invigorate Economy

Oh Joo-heon, head of the Public Housing Division at Korea Land and Housing Corporation (LH) and Huh Hae-chul, chief of the Korea Business Headquarters B2B Group at LG Electronics, attend a ceremony to sign an MOU on a pilot project to connect smart platform and control household appliances at Gyeonggi Nambu Regional Headquarters at LH on Feb. 28. (Photo: LH)

Korea Land and Housing Corporation (LH) is devoting itself to creating tangible outcomes by prioritizing three sectors and nine core tasks this year.

LH established the 2025 business plan with the goal of stabilizing people’s housing lives, invigorating the dynamics of people’s livelihoods, and ramping up the competitiveness of cities and industries, the corporation said on Feb. 23.

LH plans to carry out expanded public roles, such as increasing the housing supply and executing massive investments, amid rising outside and inside uncertainties and the long-standing slump of the construction industry.

Amid the housing supply instability, caused by construction unit price hikes and strained project financing, LH plans to build more than 190,000 public housing units, including 100,000 units with project approval and 90,000 units for purchase and jeonse rental, and supply public housing sites to build 28,000 units in order to boost the private sector’s housing construction.

The number of housing construction start units will increase to 60,000, a 20 percent increase from 50,000 in 2024, and permit and groundbreaking will be advanced while the portion in the first half of the year will be expanded.

License and permit procedures will be cut in business areas, including the Seoripul area in Seoul, each with 50,000 housing units, as announced in the Aug. 8, 2024 measures, laying a foundation for a stable supply.

LH will supply more than 50,000 units for new construction purchase rental for swift housing supply increases in cities, and will normalize the non-apartment market.

LH has offered support to jeonse scam victims, such as the provision of public rental units.

This year, LH plans to support the purchase of 7,500 units from jeonse scam victims.

To this end, LH has inaugurated units in charge at LH headquarters and regional centers and expanded expertise manpower.

Out of 100,000 units with approval this year, 37 percent will be set aside for youth, newlywed couples and the elderly, and new types of housing for senior people to cope with low-birth and aging issues.

Supply of Quality-High Public Housing at Reasonable Prices

LH will strive efforts to ease new homeowners’ burdens by lowering housing distribution prices, which have surged in recent years.

To this end, the corporation plans to ramp up management and verification by setting unit price goals in each business zone, while public housing will be supplied at reasonable prices by lowering unit prices.

Off-site construction methods, such as modular house standard plane development, will be upgraded on a gradual basis from this year so that the public sector’s technology development can lead the private sector.

Laying Growth Foundation for National Economy, Cities and Industries

LH carried out the largest-ever investment among public entities last year.

This year, the corporation plans to execute projects worth 21.6 trillion won, accounting for some 33 percent of 66 trillion won set aside by all the public institutions.

LH President Lee Han-joon said, “LH will carry out its duties faithfully, such as swift housing supply and execution of investments amid hardships of people’s life and the national economy, and we will devote ourselves to supporting public housing stability by creating policy achievements through leading public roles and pump-priming the recovery of the national economy.”

LH Implements Private Sector Participation Projects Worth 8 Trillion Won to Supply 27,000 Units

LH announced a plan to implement the private sector’s participation projects worth 8 trillion won to build 27,000 units, the most-ever, this year, the corporation said on Feb. 26.

The figures represent a rise of 3,000 units and an increase of some 1.6 trillion won in project costs, compared to last year’s.

The projects, being jointly implemented by LH and civilian contractors, are designed to supply diverse public housing using the private sector’s technology power and brands.

LH and the private sector have implemented such projects worth a combined 21 trillion won for the supply of 70,000 units since 2014.

The portion of the private sector’s participation projects will be raised to some 30 percent of the units with approval by 2027.