Korea Land and Housing Corporation restructuring and reforms

The South Korean government is pursuing a major restructuring of the Korea Land and Housing Corporation (LH), proposing to split the organization into two separate entities for the first time in 17 years. One entity will focus on land development and housing construction, while the other will manage residential welfare and asset stockpiling. This move aims to improve financial stability and accelerate development, though concerns exist regarding potential neglect of regional urban regeneration in favor of high-profit projects in the Seoul metropolitan area.

Simultaneously, LH is addressing operational challenges regarding housing quality and costs. Data indicates a massive surge in facility repair requests for public rental housing, which increased by 824.8% between 2021 and 2025. To manage rising expenses, the corporation is reforming its construction cost calculation methods. By implementing new unit price standards, LH expects to save approximately 45.1 billion won this year, with a goal of cumulative savings reaching 400 billion won by 2030 to be reinvested into public housing supply.