The South Korean government will begin soliciting bids from private companies on January 30th for public housing projects as part of a shift in strategy for the state-run Korea Land and Housing Corporation (LH), according to a statement released by the Ministry of Land, Infrastructure and Transport.
The move follows a September 7, 2025 announcement outlining the plan for LH to directly manage public housing development, a departure from previous policies. The current solicitation focuses on approximately 3,000 units across four sites: 766 units in the Magjeon neighborhood of Geomdan, Incheon; 565 units in Unnam-dong, Yeongjong, Incheon; 1,172 units spanning Hoecheon-dong and Hoejeong-dong in Yangju; and 366 units in Busan-dong, Osan. These projects are slated to begin construction this year, a significantly accelerated timeline compared to the more than two years typically required when land is sold to private developers.
This shift comes as President Lee Jae-myung’s administration prioritizes expanding public housing options. The previous “Novel Home” policy has been abandoned in favor of direct LH implementation of development, sales, and rental programs. The government intends to supply 1.1 million units of public housing over the next five years, with a focus on increasing public rental options and providing tailored housing solutions.
Kim Gyu-cheol, head of the Housing and Land Division at the Ministry of Land, Infrastructure and Transport, stated that the public-private partnerships inherent in the LH direct implementation model will “allow for the faster supply of high-quality public housing through the active interest and participation of private companies.” He further emphasized the government’s commitment to achieving tangible results in housing supply and stabilizing the real estate market through the continued implementation of the September 7 measures.
The change in approach also includes planned revisions to the housing application process, incorporating income and asset criteria, and increasing the proportion of units allocated through special application categories. The government anticipates expanding supply to urban areas and locations near transportation hubs, moving away from a focus on peripheral areas.
In September 2025, reports indicated President Lee Jae-myung had instructed Minister of Land, Infrastructure and Transport Kim Yun-deok to pursue aggressive reforms of LH. The government and the LH Reform Committee are currently restructuring the overall public housing supply system, including supply types and application procedures.
On January 29, 2026, the Ministry of Land, Infrastructure and Transport announced the commencement of the public housing project bidding process, marking the first instance of soliciting bids following the transition to LH direct implementation.