Ministry Eases FAR Rules to Accelerate Urban Housing Supply

South Korea Unveils Sweeping Reforms to Boost Urban Housing Development

SEOUL – South Korea’s Cabinet has approved a significant amendment to the enforcement decree of the Special Act on Public Housing, aiming to boost the supply of urban housing by relaxing key regulatory measures. Announced by the Ministry of Land, Infrastructure and Transport on April 6, 2026, the changes primarily involve easing Floor Area Ratio (FAR) limits and adjusting green space requirements for urban public housing complex projects. These revisions are designed to enhance project feasibility and expedite construction nationwide.

This initiative directly follows the government’s broader “New Government Housing Supply Expansion Plan,” initially announced on September 7. For international readers, the Floor Area Ratio (FAR) is a critical urban planning metric that determines the maximum allowable floor space of a building relative to the size of its land plot. By increasing the permissible FAR, developers can construct taller or larger buildings, thereby increasing the number of housing units available on the same parcel of land, a crucial factor in land-scarce urban environments.

In addition to adjusting building density, the revised regulations introduce more flexible standards for integrating public parks and green spaces within these developments. This measure is expected to reduce the financial burden on developers and streamline the land acquisition process, making urban housing projects more financially attractive and viable. These changes are particularly impactful in highly urbanized areas where land costs and development restrictions often hinder new housing initiatives.

The amendment also introduces several other institutional improvements. It expands an integrated system for project designation and planning, aiming to simplify administrative procedures and shorten development timelines. Furthermore, the government will allow greater flexibility in adjusting the volume of public housing units within complex projects, enabling a more responsive approach to market demands and community needs. These comprehensive reforms underscore the government’s concerted effort to optimize institutional frameworks and accelerate the provision of diverse housing options across South Korea.

Source: 국토교통부 — Original Article (Korean)