Korea Land and Housing Corporation faces rising repair demands and implements cost-cutting measures

The Korea Land and Housing Corporation (LH) is facing scrutiny over the management of public rental housing quality and is simultaneously implementing new measures to reduce construction costs.

Data submitted to the National Assembly reveals that facility repair requests for Happy Housing and integrated public rental housing have surged by 824.8% between 2021 and 2025, far outpacing the 105.5% increase in housing supply. As of August, repair requests have already reached 87.3% of the previous year's total. Issues include delayed repairs, with 30% of unprocessed cases exceeding the 15-day deadline, and a rising trend of repetitive repair requests for the same facilities.

To address rising project costs, LH is reforming its construction cost calculation methods. By introducing an ‘expected contract unit price’ and expanding the scope of standard market unit price applications, the corporation aims to save approximately 45.1 billion won this year. LH projects cumulative savings of roughly 400 billion won by 2030, intending to reinvest these funds into expanding the public housing supply.