"Establishing the Housing Ladder"... 1.19 Million Public Housing Units to Be Supplied by 2030

Ministry of Land Unveils "Housing Stability Plan" for Expanded Housing Welfare
Supporting Real Demand with Annual Supply of 240,000 Units
150,000 Public Housing Units Available by End of Next Year
190,000 Universal Public Rental Units Targeting the Middle Class

The government has announced plans to supply 1.19 million public housing units by 2030. Public housing refers to all types of public rental units and public housing for sale, including those built or purchased by the government. Of the total, the government aims to supply 920,000 units, or about 77%, in the Seoul metropolitan area.

As of the end of 2024, there are about 1.93 million long-term public rental housing units (with leases of at least ten years) available. The government set a goal of increasing this to over 2.5 million units, which would push the proportion of long-term public rentals to more than 10% of all housing. In addition, 190,000 universal public rental units targeting the middle class are scheduled to be supplied by 2030.

The Ministry of Land, Infrastructure and Transport announced the “Housing Stability Plan” on September 21. This is the first comprehensive housing welfare initiative introduced by the current administration. The plan includes not only the public rental supply strategy but also outlines housing welfare plans already underway or set to be launched in the future.

The government plans to gradually increase the supply of public housing, starting with 187,000 units this year, 218,000 units next year, 225,000 units the following year, 240,000 units the year after that, and up to 318,000 units by 2030. By rental type, the breakdown for the next five years will see 350,000 construction-based rentals (the highest share), 313,000 purchase-based rentals, 230,000 jeonse (lump-sum deposit) rentals, and about 52,000 public-supported private rentals. For public housing units for sale, about 243,000 units will be supplied.

Kim Itak, First Vice Minister of the Ministry of Land, Infrastructure and Transport, explained, “With this plan, not only will we increase the amount of public housing to a level above developed countries, but we will also innovate housing quality and residential services to match consumer expectations. We will transform the support system into a regionally focused, customized approach, considering people’s life stages and local conditions.”

The target of 1.19 million public housing units translates to an annual average supply of around 240,000 units, equivalent to about 14% of all 8.717 million rental households in Korea as of the end of 2024. Specifically, from the fourth quarter of this year through the end of next year, about 150,000 units nationwide and approximately 100,000 units in the metropolitan area are expected to be available for occupancy. The Ministry anticipates this will contribute to stabilizing the jeonse and monthly rental markets.

Lee Itak, the First Vice Minister of the Ministry of Land, Infrastructure and Transport, is announcing the Housing Stability Plan on the 21st at the government Sejong newsroom. The Housing Stability Plan includes supplying 1.19 million public housing units by 2030. Provided by the Ministry of Land, Infrastructure and Transport

If the plan proceeds as scheduled, the stock of long-term public rentals (ten years or more) is expected to surpass 2.5 million units by 2030. As of the end of 2024, Korea's long-term public rental stock ratio stands at 8.4%, already exceeding the OECD average of 7.1%. The government expects this ratio will reach double digits by 2030.

Of the 243,000 public housing units for sale, about 210,000 will be supplied in the metropolitan area. To prevent excessive benefits for early buyers while keeping sales prices low, the government will introduce equity accumulation and profit-sharing models. As for newly established long-term private rentals (over 20 years), the Housing and Urban Guarantee Corporation (HUG) is working on a separate mortgage product. The business model, including specific rental price levels, is expected to be released in detail within the second half of this year.

Given that public rentals have so far mainly targeted vulnerable groups, the newly introduced universal public rental units will have specific supply conditions finalized soon and will be unveiled accordingly. These will be provided with larger floor areas, differentiated layouts, and finishing materials. Preferred locations, such as sites near subway stations or city centers, will be prioritized.

Examples of the government’s universal public rental units include the Goyang Changneung B-1 block (1,594 units, to break ground this year), Namyangju Jinjeop 2 A-2 block (342 units, construction in 2027), and Namyangju Wangsuk 2 A-5 block (351 units, construction in 2027). The units will be designed mainly in three- and four-bay formats to maximize exclusive indoor area, and finishing materials will match those in private housing. In housing development areas, units will range from 55 to 85 square meters, while in central urban areas, units will be 40 to 60 square meters.

For single young households, units will generally be at least 30 square meters, but in central urban locations, units under 30 square meters will also be available to keep rents low. The government plans to announce eligibility requirements, income and asset criteria, and rental pricing system for universal public rentals within the year after collecting public feedback. These requirements will be higher than those currently applied for public rental housing.

A floor plan of a universal public rental housing example provided by the government. Provided by the Ministry of Land, Infrastructure and Transport

The government will also work on improving the quality of existing public rentals. Newly built units will be concentrated in locations with high accessibility, such as near subway stations, and the share of mid-sized units will be increased. In the existing 31-square-meter layout, a balcony extension will be provided, resulting in an actual usable area increase of about 5 square meters. Floor structures will be designed to reduce noise between floors.

Other measures include expanding the coverage and scope of housing benefits for low-income households and enlarging support programs to help households living in single-room accommodations or small studios move into public rentals. While the current system provides support for rent and housing repairs, the government is considering, together with the National Assembly, additional public maintenance fee support. To help vulnerable groups unfamiliar with the existing systems, the government will establish a proactive support system in cooperation with the Ministry of Health and Welfare and local governments, connecting different datasets to directly reach and support those in need.

Vice Minister Kim added, “We will implement the Housing Stability Plan thoroughly to bring about real changes in people’s lives, far beyond mere planning. We will regularly monitor the progress, listen to feedback on the ground, and promptly address any shortcomings.”

This content was produced with the assistance of AI translation services.