On September 7, 2025, South Korea’s government took a bold step in tackling the nation’s persistent housing woes, announcing a sweeping new plan to add 1.35 million new homes nationwide by 2030. The announcement, made at the Seoul Central Government Complex in Jongno-gu, Seoul, signified the opening of a new relocation public office—an initiative designed to streamline the housing supply process and address both demand and speculation concerns.
Gu Won-cheol, head of the Gyeongbuk Provincial Government Planning Department, presided over the event alongside Jang Kwan of the National Land Transportation Department. The pair, joined by other high-ranking officials, underscored the urgency of the moment as they shook hands before the meeting—a symbolic gesture that set the tone for the ambitious agenda ahead. According to Seoul Shinmun, the government’s target is to break ground on 1.35 million new housing units in the Seoul metropolitan area and across the country by 2030, with an annual goal of 270,000 new units in the capital region alone.
Gu Won-cheol, speaking at the meeting, left no doubt about the government’s intent: “We will push forward with a speed war on housing supply,” he declared. “For the fundamental stability of the housing market, sufficient supply is essential.” His remarks, reported by Yonhap Infomax, reflected a shift in strategy from previous years, when supply was often managed by permits and approvals rather than actual construction. “This time, we will manage by the number of units actually started, not just approved, to ensure these homes become reality,” he added.
The new relocation public office, unveiled the same day, is central to this push. Its mission: to directly tackle the bottlenecks in housing supply, particularly in the greater Seoul area, where demand has long outstripped available stock. The office will serve as the operational hub for implementing the government’s housing supply expansion plan, with a strict focus on transparency and the prevention of speculation or illegal activities.
The government’s plan goes well beyond simply building more homes. According to Hankyoreh, Gu Won-cheol explained that the Korea Land and Housing Corporation (LH) will take a more hands-on approach. “Public land developed by LH will not be sold to private entities but will be supplied directly by LH itself, dramatically increasing the speed of delivery,” he said. This marks a significant policy shift, as public land sales to private developers have often led to delays and, at times, speculative price hikes. In addition, the government will enact special legislation to accelerate complex redevelopment projects on old government buildings, idle land, and school sites—areas where diverse stakeholder interests have historically slowed progress.
Expediting the construction process is another key pillar. Gu Won-cheol outlined plans to simplify redevelopment and reconstruction procedures and to fast-track land compensation for public housing projects. “By streamlining these steps, we aim to cut project timelines significantly,” he said. The relocation public office is expected to play a crucial role in managing these accelerated processes, ensuring that new housing supply hits the market as quickly as possible.
But supply is only half the equation. The government is also tightening controls on housing demand and speculation. One major move involves lowering the Loan-to-Value (LTV) ratio in regulated areas from 50% to 40%, making it harder for buyers to take on excessive debt—a response to concerns that easy credit has fueled speculative buying in hot markets. “We will also empower the Minister of Land, Infrastructure and Transport to directly designate land transaction permit zones in areas with high speculation risk, even within the same city or province,” Gu Won-cheol explained, according to Yonhap Infomax. This measure is designed to clamp down on speculative investment and keep the focus on genuine end-users.
Monitoring and enforcement will be strict. The relocation public office is charged with ensuring that all new policies are rigorously implemented, and the government has pledged to keep a close eye on both housing and household debt trends. “The government will carry out this housing supply expansion plan without fail and will closely monitor household loans and real estate market trends, taking additional stabilization measures whenever necessary,” Gu Won-cheol stated.
The announcement comes at a time of heightened concern about both housing affordability and financial stability in South Korea. While recent measures—such as the June 27 household debt management plan—have helped cool the market somewhat, officials acknowledge that supply-side constraints remain acute, especially in Seoul and its suburbs. “The market has stabilized somewhat with our debt management measures, but relying on demand management alone will not suffice,” Gu Won-cheol told KBS during a Sunday interview. “People are worried that demand management is not enough. That’s why we’re rolling out this massive supply policy to further stabilize home prices.”
The new policies are not without controversy. The government’s decision to base supply targets on construction starts, rather than permits, marks a decisive break from the past. Gu Won-cheol emphasized the importance of this change: “We will announce the supply plan based on construction starts, and after groundbreaking, we will ensure procedures move quickly so that homes reach the market faster.”
Meanwhile, the government is also grappling with related fiscal and tax policy debates. There has been ongoing controversy over proposed changes to the capital gains tax threshold for major shareholders, with the government promising a decision within the month. “We’re listening to the concerns of the public and will make a decision as soon as possible to revitalize the stock market,” Gu Won-cheol said, acknowledging investor unease and political debate within the ruling party.
Despite the ambitious targets and sweeping reforms, Gu Won-cheol was candid about the challenges ahead. “The most important mission for us is economic growth, and for that, companies need to grow,” he said. “If companies grow, the capital market will be revitalized.” Yet, he also recognized the risks posed by growing national debt and fiscal deficits. “I won’t say that national debt is not a concern. We are well aware of the public’s worries and are focusing on fiscal soundness as we prepare next year’s budget.”
For now, the government has ruled out a third supplementary budget to stimulate domestic demand, signaling a preference for structural reforms over short-term fiscal stimulus. As the relocation public office begins its work, all eyes will be on whether this ambitious new approach can deliver the stability and affordability that South Korean homebuyers have long sought.
The stakes couldn’t be higher. With millions of families hoping for relief from soaring home prices, and policymakers determined to avoid the pitfalls of past housing booms and busts, the next few years will be a critical test of the government’s resolve—and its ability to turn policy into tangible progress.
