A view of the Dongtan 2 LH No. 28 Apartment Complex, built by Korea Land & Housing Corp. (Photos: LH)

Korea Land & Housing Corp. (LH) is accelerating the supply of “gonggong” (state-supplied) jeonse houses allowed to live for up to six years at prices, set at 90 percent of current levels.

Gonggong jeonse houses are supplied at a format of a full deposit money, striking a contrast with the conventional public rental houses being supplied at half in jeonse.

LH said on May 12 that applications on the first gonggong joense house, unveiled in April, had been accepted.

The project involves gonggong jeonse 117 units, being supplied in Anyang, Gyeonggi-do, whose moving is slated for June. LH plans to receive applications on the second gonggong jeonse house project in June.

LH plans to accept applications on 59 gonggong jeonse house units in Nowon-gu, the first such rental houses being supplied in Seoul, 199 gonggong jeonse house units in Incheon and 36 gonggon jeonse house units in Gyeonggi-do.

Earlier, the government announced a plan to introduce the gongong jeonse house targeting middle-income families each with three or four members between 2021 and 2022 on a temporary basis in the wake of the last Nov. 19 steps to rein in soaring jeonse prices.

A poster to publicize LH University Students Housing Architecture Contest.

Under the steps, the government aims to supply 114,000 jeonse houses, including 70,000 units in the Seoul metropolitan area, for the next two years.

Part of the units, to be supplied during the designated period, comes under a new format of gonggong jeonse.

Gonggong jeonse houses are supplied to those with no houses regardless of their income levels.

But they are designed to target households in the middle-income bracket, with preferential treatment being given to three- or four-member households based on policy consideration of children being taken care of.

In particular, the government has stressed the expansion of jeonse house supply for a short period of time to curb soaring jeonse prices.

As part of efforts to comply with these government policies, LH has been expanding jeonse house supply by purchasing houses that remain unoccupied, unsold and by signing contracts to secure multi-family houses and “officetels,” to be built newly in a short period of time.

LH is prioritizing the purchasing of houses whose exclusive floor space strands at 50 sq. meters or more enough to accept three- or four-member families.

The corporation has set purchase guidelines giving preferential treatment to 59 sq. meters to 85 sq. meters in exclusive floor space, two restrooms, underground parking and community facilities.

“It is more important to supply gonggong jeonse houses as soon as possible to cope with the private jeonse market, which shows signs of declining supplies and soaring jeonse prices,” an LH official said.

If yearly gongong jeonse house supplies are secured, the official said, LH plans to accept applications on a monthly basis.

Deposit money for gonggong jeonse houses is determined at levels, equivalent to 80 percent to 90 percent of current rental evaluation prices.

The deposit money of “Mirae Town Office-tels,” the first gonggong jeonse house project in Anyang, Gyeonggi-do, is set at 246.24 million won for 83.42 square meter in floor space on sixth to 14th floors and 183.06 million won for 65.08 sq. meters.

LH purchased each unit of the office-tels, dedicated last December, for 300 million won to 320 million won and rented them at levels, 81 percent of current jeonse prices.

LH said the rental of the office-tel stands at 60 percent to 70 percent of jeonse levels of its neighborhood apartment units.