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[BUSINESS] · South Korea · 9 sources

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South Korea launches 500 billion won land purchase to boost housing supply

South Korean authorities are implementing a series of measures to accelerate housing supply in the Seoul Metropolitan Area. The Ministry of Land, Infrastructure and Transport, alongside the Korea Land and Housing Corporation (LH), has launched a 500 billion won pilot program to preemptively purchase idle land. This initiative targets plots of 3,300 square meters or larger suitable for multi-family housing in Seoul, Gyeonggi, and Incheon to ensure land is available for rapid development.

To support these efforts, the Financial Services Commission is easing financial constraints on the construction sector. Key measures include a two-year temporary suspension of project financing (PF) equity ratio regulations for residential projects and the expansion of PF guarantee scales. Additionally, the Korea Real Estate Board is strengthening field support to resolve construction cost disputes and delays in reconstruction and redevelopment projects, aiming to ensure government supply policies translate into actual housing availability.

Entities

Bank of Korea · Financial Services Commission · Kim Mi-ae · Korea Land and Housing Corporation · Korea Real Estate Board · Ministry of Land, Infrastructure and Transport · Seoul metropolitan area · South Korea

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