LH Plans More Than 20,000 Public Rental Homes Across Seoul in Three Years

Korea Land and Housing Corp. plans to supply more than 20,000 public rental homes across all 25 districts of Seoul over the next three years, expanding a program aimed largely at young adults and newlywed couples facing high urban housing costs.

The state-run housing agency, commonly known as LH, said Sunday that it intends to recruit tenants for 20,528 homes in the capital. Young people are allocated 14,558 units, or 70.9 percent of the total, while newlywed couples are set to receive 3,398 units, accounting for 16.6 percent. The remaining 2,572 homes, or 12.5 percent, will be provided through other categories.

Dongdaemun District is scheduled to receive the largest announced allocation, with 1,920 units. Guro District follows with 1,900, while Gangdong is slated for 1,861 and Gangseo for 1,638. The plan spreads supply throughout the city rather than concentrating it in a small number of development zones.

LH's purchase-rental model differs from a conventional large public housing development. The corporation either buys newly constructed private homes after completion or acquires existing properties, then offers them to eligible tenants at rents below prevailing market prices. Because residents can generally move in within one to two years after construction begins, the model is used as a relatively quick way to add affordable housing in dense urban areas.

The agency currently manages about 207,000 purchase-rental homes nationwide. Of those, 113,000 are in the Seoul metropolitan area and 34,000 are within Seoul itself. The planned three-year intake would therefore represent a substantial addition to LH's existing portfolio in the capital.

LH said applications from private builders to enter purchase agreements for newly built rental properties in the wider capital region increased 63 percent after it strengthened support for early project costs and made other program changes in July.

From this year's agreed volume, the corporation plans to begin construction on at least 40,000 homes across the metropolitan region, including more than 10,000 in Seoul, before the end of the year. Move-ins for those properties are expected to begin late next year.

LH President Lee Seong-hoon said the agency would concentrate short-term supply in Seoul and the surrounding region through 2030 so that young people, newlyweds and other prospective occupants can feel the effects of the government's housing-stability plan.