Increased Supply of Public and Rental Housing

LH to alleviate housing shortages by building more low-cost and long-term lease homes

Korea Land and Housing Corp. (LH) plans to supply 77,000 new homes at a cost of 30.7 trillion won, along with 12.8 million square meters of land for housing sites, the state-run housing corporation said recently.
The company will accept applications for occupants for those new residential houses and will spend 13 trillion won to buy land to build houses in such areas as Guri and Galmae for low-cost residences under the company’s “nest-housing” residential housing projects, the company said.
The company’s budget includes large government projects, such as housing construction in Sejong City, nest housing projects and others, the company said.
The budget is about 13 trillion won less than that for 2010, but about the same as the revised budget amount, totaling 31 trillion won. Only 26 trillion won of the budget was actually spent in 2010. LH officials said this year’s budget, too, could be reduced or increased depending on the variations in the projects targeted for implementation.
They said 25.4 trillion won of the budget will go to projects already underway and the rest will finance new projects this year. In particular, the nest housing projects, housing projects in new cities around the country and Sejong City, and reimbursement for land for public housing projects and industrial complexes will account for 13.2 trillion won of the budget. The nest housing projects will get 6.3 trillion won and public housing projects for low-income people and rental housing construction projects were allocated 2.2 trillion won.
LH plans to put up 29,506 public residential units for purchase and 30,958 public housing units for lease, for a total of 77,523 houses, and the company plans to build 23,398 public houses and 42,303 leasing houses this year to alleviate the shortage in housing supplies.
Last year, only 16,000 residential houses were built by LH, but the number will rise to 60,150 houses this year, including 27,566 public houses to be allocated at low prices, 2,100 houses for lease and 9,840 houses for long-term lease (10 years). LH will sell 12.8 million square meters of land for commercial facilities and joint housing projects at a cost of 15 trillion won this year.
Purpose of Merger
Under the government’s scheme of advancing public corporations, LH launched itself by merging KLC (Korea Land Corp.) and KNHC (Korea National Housing Corp.) in an effort to eliminate the duplication of functions, to boost the efficiency of management and to contribute to national economic development.
Major Duties
* To construct and supply decent and affordable housing units to the vulnerable and to improve their residential environment, as well as to implement tailored residential welfare programs
* To develop housing land, new towns, a Multi-functional Administrative City and Innovation Cities, as well as to execute projects aimed at regenerating cities in a bid to create comfortable residential spaces and urban environment
* To develop industrial and logistics complexes, the Kaesong Industrial Complex, FEZs and overseas land in order to boost national competitiveness and to create employment
* To perform land reserve and management, rental housing management and land and housing informatization
Capital
LH has received an investment of 10.6 trillion won from the government and the Korea Development Bank to stabilize the people’s residential welfare and help national economic development. LH has legal capital of 30 trillion won and paid-in capital of 15.2 trillion won, allowing it to perform the public projects in the interest of the people.
Organization and Workforce
LH’s organization consists of HQs (6 divisions, 1 research institute, 3 units, and 53 departments), 12 regional HQs and 12 project divisions. Its 5,600 staff members specializing in land and housing are striving to systematically implement national housing policies. nw

President Lee Ji-song of Korea Land and Housing Corp.