Politics · South Korea · 1 hr ago
South Korea’s public housing starts lag behind annual target
South Korea is continuing policies to limit housing demand while trying to increase public housing supply.
At a parliamentary audit, lawmakers reviewed how those policies are being carried out.
Since August, apartment prices have fallen in Seoul’s three Gangnam districts, but have risen in outer Seoul and southern Gyeonggi Province.
Housing-related loans have also continued to grow.
By October 2, the Korea Land and Housing Corporation had started construction on 13,293 public homes, 25.7% of its annual target of 51,783.
The agency says construction starts are concentrated at year-end and it still expects to meet the target, but lawmakers criticized the delay and questioned calls to tighten mortgage limits.
The corporation also says higher construction costs and major development projects are adding to funding needs; even if construction targets are met, residents will have to wait for homes to be completed.
LH had started 13,293 publicly built homes by October 2, equal to 25.7% of its annual target of 51,783.
The housing agency says construction starts are concentrated at year-end and that it can still meet the target.
Lawmakers from both governing and opposition parties criticized LH’s focus on tighter mortgage rules before it fulfills its supply plans.
LH also reported that purchases of existing homes for rental reached only 13% of the annual target by August.
The agency said higher construction costs and concentrated compensation and construction work were adding to its funding needs.
- Who
- Korea Land and Housing Corporation (LH), the state housing agency.
- What
- LH’s construction starts for public housing were at 25.7% of its annual target as of October 2.
- When
- The figures were reported on October 13, 2026; the construction-start count was as of October 2.
- Where
- South Korea.
- Why
- LH said construction starts are concentrated at year-end. It also cited higher construction costs and concentrated compensation and construction work as funding pressures.
LH
Lawmakers criticizing LH
Meeting the annual construction target
LH
LH President Lee Seong-hoon said the agency’s calculations showed it could meet the target because construction starts are concentrated at year-end.
Lawmakers criticizing LH
Lawmakers said LH should carry out its planned housing supply rather than focus on proposing tighter mortgage rules.
Mortgage lending rules
LH
Lee said reducing mortgage limits was necessary in the context of expanding supply and the possibility that higher interest rates could lower home prices.
Lawmakers criticizing LH
People Power Party lawmaker Eom Tae-young and Democratic Party lawmaker Jeong Il-young criticized the LH president for calling for tighter lending rules.
LH President Lee Seong-hoon said at a press conference that mortgage loan limits needed to be reduced.
LH had started 13,293 publicly built homes, 25.7% of its annual target.
South Korea’s central bank presented housing-market and household-loan conditions in materials for a parliamentary audit.
Maeil Business reported the housing supply figures and debate over LH’s progress.
- Public housing construction starts
- 13,293 homes as of October 2
- Annual LH construction-start target
- 51,783 homes
- Share of annual target reached
- 25.7%
- Purchase-based rental housing target
- 18,000 homes
- Purchase-based rental results
- 13% of target through August
- Construction costs
- LH said they had risen by close to 50%
What people are saying
It comes out as achievable in our calculations.
Even if you make up the shortfall at year-end, this is a crisis situation.
Do not call for lending regulations first as an excuse for delays in supply.
Sources
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