Korea Land & Housing Corporation (LH) takes on more than 180 million won in debt for every integrated public rental home it builds, according to data released on the 13th. The figure jumped more than 26% in a single year, pointing to a rapid buildup in LH debt as the government pushes to expand supply.
Debt incurred per integrated public rental unit supplied last year came to 183.94 million won, according to data the office of Rep. Kim Mi-ae of the People Power Party, a member of the National Assembly's Land, Infrastructure and Transport Committee, obtained from LH. That was up 26.4% from 145.51 million won in 2024. LH calculated the figure by subtracting government support of 156.48 million won — fund equity investments and loans — and tenant deposits from the 364.9 million won cost of building each unit in 2025.
Government support as a share of project costs has fallen every year, from 50.1% in 2022 to 47.0% in 2023, 46.9% in 2024 and 42.9% in 2025. Between 2022 and 2025, the cost per unit rose 54.4%, from 236.31 million won to 364.9 million won, while government support climbed just 32.1%, from 118.49 million won to 156.48 million won. Actual project costs are rising faster than state assistance.
Government support also includes loans that LH must repay, leaving the corporation with a substantial cost burden. Of the 156.48 million won in support per unit in 2025, more than half — 79.49 million won — came as fund loans, while 76.99 million won was equity investment. Measuring debt as project costs minus equity investment alone, as the underlying data allows, debt per unit rose 17.7% in one year, from 244.53 million won in 2024 to 287.91 million won in 2025.
Integrated public rental housing merges the former national rental, permanent rental and happy housing programs into a single scheme for low-income households, young adults and others, with rents set at 35% to 90% of market rates depending on the tenant. With the government moving to expand public rental supply, LH's financial burden is expected to grow sharply.
"More than half of the cost of integrated public rental projects in 2025 was left as LH's burden, not covered by government equity investments, loans or tenant deposits," Kim said. "The fund loans, which account for more than half of the support, are also money LH has to pay back."
She added: "The government should not put supply targets front and center alone. It must weigh the funding required alongside LH's burden, and draw up plans aimed at supplying homes people actually want to live in."