On July 16, 2026, the South Korean government unveiled a sweeping set of housing and infrastructure policies, aiming to transform the nation’s urban landscape and address mounting concerns over housing supply, regional imbalance, and public safety. The announcement came during a key policy briefing by Kim Yoon-duk, Minister of Land, Infrastructure and Transport, to President Lee Jae-myung at the Blue House State Guest House, as reported by multiple outlets including Yonhap News TV, Digital Daily, and Newspim.
At the heart of the government’s agenda is a determined push to accelerate the supply of new homes, particularly in the so-called 3rd new towns—major housing developments on the outskirts of Seoul and other metropolitan centers. The Ministry committed to shortening land development and permit processes, advancing groundbreaking for these sites by one to two years. This “speed war,” as described in Newspim, is designed to address a chronic shortage of affordable housing and to stabilize soaring real estate prices that have frustrated many would-be homebuyers.
But the government isn’t stopping there. The new policy bundle includes a plan to convert long-unused commercial and non-residential land into residential zones, unlocking fresh supply in both city centers and outlying areas. Within July 2026, new candidate sites for urban complex projects in Seoul are set to be announced, with additional efforts to identify school and other public lands suitable for housing. According to Digital Daily, "The government plans to advance the groundbreaking of major housing sites including the 3rd new towns by 1 to 2 years by shortening land development procedures."
In a bid to support the country’s youth and middle class—groups that have often found themselves squeezed out of prime locations by rising rents—the government will introduce new types of long-term public rental housing in desirable urban areas. These new public rental units are intended to provide stable, affordable options for those who wish to live and work in city centers. The Ministry also announced a safe trust project to prevent jeonse fraud, a persistent concern in Korea’s unique rental deposit system. Under this scheme, a public rent stabilization organization will manage jeonse deposits and guarantee landlords a stable monthly income, reportedly around 4-5% per month. "The organization will operate jeonse deposits and provide landlords with returns of 4-5% monthly without delay," the Ministry explained, as cited by Newspim.
The reforms go beyond just building more homes. The government is set to overhaul the Korea Land and Housing Corporation (LH), with a reform plan due in September 2026. Rather than selling public land to private developers, LH may pivot to directly supplying housing or offering long-term leases on industrial land. This marks a significant shift in how public land is managed and could have lasting effects on the housing market.
Meanwhile, high-end apartment prices continue to break records across Seoul, the metropolitan area, and even regional cities. Newspim noted that Hanam The Hill in Yongsan sold for 3.8 billion KRW in May 2026, while Daechi Reuel in Gangnam fetched 2.8 billion KRW in June. This trend underscores a growing polarization in housing prices, with prime properties attracting intense demand even as the broader market remains cautious due to lending restrictions and interest rate pressures.
Debate also rages on over real estate taxation. At a recent forum, experts proposed switching the comprehensive real estate tax (종부세) calculation from the number of homes owned to the total assessed value, aiming to correct disparities that currently penalize those who own multiple, lower-value homes versus a single, high-value property. There were also calls to increase effective tax rates on ultra-high-priced homes and to adjust capital gains tax rules to encourage more listings from multi-homeowners. Yet, some warned that abrupt tax hikes could lead to a freeze in listings and a shrinking rental market, suggesting that tax reform and supply expansion must proceed hand in hand.
Safety and innovation in construction also feature prominently in the government’s plans. Prompted by incidents such as the Seosomun overpass collapse, the Ministry will tighten safety oversight on dismantling aged infrastructure, mandate video recording of key construction processes, and revise relevant laws by the end of the year. "Safety management at construction sites will be strengthened including revising safety management systems for dismantling of aged infrastructure and mandating video recording of key processes," Digital Daily reported.
On the regional development front, the government is pressing ahead with its ‘5 Poles 3 Specials’ strategy to foster balanced growth. This includes the creation of corporate-type advanced cities linked to mega projects and a transportation network connecting industrial and residential areas within 30 minutes. The second phase of public institution relocation and the phased transfer of central administrative agencies from the capital region will be announced within 2026, and a new basic plan for the Jeonbuk Saemangeum development—targeted for completion by 2035—will be prepared this year.
President Lee Jae-myung took particular interest in the Jeonbuk Saemangeum mega-project, highlighting Hyundai Motor Group’s 9 trillion KRW investment as “enormous in scale.” Addressing concerns over regional neglect, Lee criticized what he called “strange talk” by some officials and stressed that such large-scale investments are guided by economic logic and corporate decision-making, not political favoritism. "It is really problematic for responsible people to say strange things about this," Lee was quoted as saying, according to Seoul Shinmun.
Transportation innovation is another pillar of the plan. The Ministry will expand the benefits of the ‘Everyone’s Card’—a unified public transport payment system—by linking it with the Green Card and local government free transportation cards, and by considering the inclusion of youth aged 13-18 in refund programs. Efforts to improve accessibility also include the expansion of national wide-area bus routes, demand-responsive transport, and the introduction of legislation to guarantee mobility rights for vulnerable groups. Incheon International Airport parking will be expanded by more than 7,000 spaces by 2033, and local airports will be developed as hubs for foreign tourists.
The government is also embracing future mobility, with plans to deploy 200 autonomous vehicles in the Gwangju demonstration city by year’s end, introduce battery lease electric vehicles, and prepare for the initial commercialization of Urban Air Mobility (UAM) by 2028. Special legislation to promote the commercialization of mobile robots and modular housing is in the works, with public modular housing orders set to triple to 3,000 units this year.
Minister Kim Yoon-duk summed up the administration’s ambitions: "As we enter the second year of the people’s sovereignty government, it is a crucial time to achieve genuine growth and leap forward toward an irreplaceable Korea. We will focus all our capabilities on delivering tangible results in balanced development, housing stability, public safety, transportation innovation, and future growth."
With this comprehensive policy package, the government is betting big on fast-tracking housing, modernizing infrastructure, and making South Korea’s cities more livable and equitable for all.