President Lee Jae-myung on the 20th called for a "blitz on supply" that would sharply compress every stage of housing delivery, from land development through permits to groundbreaking. Floating measures to shorten construction schedules, including raw-land sales and modular housing, he stressed a shift in supply policy toward actual move-ins rather than declared targets.
At a Cabinet meeting held at the Blue House that day, Lee instructed officials to "cut the time required for land development, various permits and groundbreaking as much as possible and mount a blitz on supply." He added that "what matters is not a declaration or an announcement that we will build a certain number of units, but actual groundbreaking and move-ins," and said "the success or failure of this administration hinges on housing stability that the public can feel."
Lee noted that "over roughly three years since 2022, housing construction permits have fallen sharply, centered on Seoul," and pointed out that "delays in supplying new land for new towns and elsewhere have made supply instability structurally persistent." Housing permits in Seoul fell about 63% over a decade, from 113,000 units in 2015 to 42,000 units last year.
He also called for an expansion of rental housing supply. "Through active fiscal management, we must pay particular attention to the rapid supply of high-quality public rental housing for young adults and the middle class," Lee said.
Lee visited the Gyeyang new town in Incheon, where a total of 18,000 units are slated for supply, to inspect preparations for occupancy. He pointed to the problem of civil litigation extending project timelines during compulsory land acquisition and suggested the need to address this through legislation.
Lee Sung-hoon, president of Korea Land & Housing Corporation (LH), reported on site a plan to raise the average floor area ratio in third-phase new towns from 206% to more than 250%. A higher floor area ratio would sharply increase the volume slated for groundbreaking, from 172,000 units to about 210,000 units. The president suggested that "near rail stations and alongside arterial roads, the floor area ratio should be raised even further."
Addressing the Ministry of Land, Infrastructure and Transport and LH, he urged: "I ask you to devote yourselves to breaking ground on most of the public housing volume in the third-phase new towns, about 90%, by 2030, in line with the target we announced in August. We must keep our word." He added, "Break away from existing practice, re-examine every procedure from scratch and do your utmost so that actual groundbreaking plans can be moved up even by a single day."
Lee: Do Not Be Bound by Practice or Procedure
Unconventional Measures Floated, Including Raw-Land Sales and Modular Housing
President Lee Jae-myung on the 20th called for a "blitz on supply," instructing officials to mobilize every available means of shortening construction periods, including raw-land sales and modular housing. He also directed a review of improvements to land compensation and permit procedures, as well as expanded financial incentives and legal amendments. The directive is read as a determination to concentrate policy capacity on expanding housing supply, based on a judgment that existing policies alone cannot resolve the structural shortage.
At the Cabinet meeting held at the Blue House that day, Lee instructed officials: "Do not be bound by existing practice and procedure. Cut the time required for land development, various permits and groundbreaking as much as possible and mount a blitz on supply." At a site roundtable in the Gyeyang new town in Incheon, he said, "The government usually manages housing supply using groundbreaking as the benchmark, but the supply benchmark the public feels should be move-ins," stressing that "we must produce visible results in which the measures already announced lead quickly to actual occupancy."
His instruction to review raw-land sales drew particular attention. Under raw-land sales, a public developer supplies land before completing site development, and the business operator that receives it takes part in the development. Because site development and construction preparation can proceed partly in parallel, it is seen as an alternative for shortening the housing supply timeline.
He also called for changes in construction methods. Lee confirmed the effect of modular housing in shortening construction periods, as proposed by an expert, and instructed that it be reviewed comprehensively with a view to developing the market. Modular housing involves manufacturing the main components of a building in a factory and assembling them on site, with the advantage of reducing on-site work. The aim is to re-examine the entire housing supply process, from land development through construction.
Project delays stemming from land compensation and legal disputes were also singled out for improvement. Lee called for land acquisition and negotiation to proceed simultaneously in order to bring supply timelines forward. In particular, he pointed to the problem of projects being delayed by civil litigation during compulsory acquisition and instructed that legislative remedies be reviewed and reported separately. He also directed an expansion of financial incentives for faster supply.
Beyond Lending and Tax Rules, Strengthening Execution on Supply
Shorter Timelines From Land Development Through Construction
Lee also took direct charge of organizational and staffing issues at Korea Land & Housing Corporation (LH). He pointed out that inter-ministerial consultations on adding LH personnel had not been completed and reviewed the status of securing compensation staff. He asked that attention be paid to employee treatment so that staff are not disadvantaged or discouraged during the process of separating LH's organization. The move is read as a judgment that raising supply speed requires first securing the organizational capacity to carry it out.
As the cause of the current shortage, he cited a supply gap accumulated over several years. "From 2022 through last year, new housing permits and groundbreakings fell by nearly half," Lee said. "Housing supply takes about three years after permits, and because of that, the supply shortage is emerging from now on." Housing permits in Seoul fell about 63% over a decade, from 113,000 units in 2015 to about 42,000 units last year. Apartment permits in Seoul last year also fell 26.3% from a year earlier.
Lee's remark at a tea meeting with reporters the previous day, that "property supply will properly normalize from 2028 onward," came in the same context. Given that a considerable lag before actual occupancy is unavoidable, the plan is to pull supply schedules forward as much as possible to ease the supply-demand imbalance.
The presidential policy office also plans to continuously monitor implementation of the supply measures. It is understood that it will review progress at each stage, from land development through permits, groundbreaking and occupancy, and coordinate among ministries to clear factors causing project delays. Starting with the first regular briefing on housing supply on the 16th, the government has decided to disclose implementation status twice a month. Supply expansion directives from the president, implementation checks by the presidential office, and project management by the prime minister's office and the land ministry are thus to be pursued in tandem.
Land Acquisition and Negotiation in Parallel; Legislative Remedies Ordered
Lee: Keep the Target of Breaking Ground on 90% of Third-Phase New Towns
Lee also called for the existing target of breaking ground on about 90% of public housing volume in the third-phase new towns by 2030 to be met without fail. Saying "we must keep our word," he stressed raising speed at every stage, including planning, land compensation and permits, and boldly improving the systems and regulations that block supply.
He also made clear that swift supply in the third-phase new towns is the turning point that will determine the success or failure of property policy. "If the supply policies already announced are not properly implemented, public confidence in property policy as a whole will inevitably decline," Lee said. He asked that infrastructure in Incheon's Gyeyang — including transportation, education and district heating — be prepared in time for occupancy, as 1,285 units there become the first in the third-phase new towns to be occupied in December.
Some observers caution, however, that the practical applicability and business conditions for measures such as raw-land sales and modular housing need close verification. The concern is that with delays in land compensation and infrastructure construction already accumulated in the third-phase new towns, shortening construction periods alone will not easily fill the supply gap in a short time. Lee Eun-hyung, a research fellow at the Construction Policy Research Institute, advised that "along with supply speed, housing quality and living conditions for residents must be secured in parallel," adding that "practical applicability and effectiveness need to be examined at the same time."