LH to Make First Public Purchase of Land for Public Housing in the Seoul Metropolitan Area

[Financial News] The government is purchasing land owned by the public and private sectors to increase the number of potential sites for public housing in the Seoul metropolitan area. This is the first instance of publicly purchasing land for supply and demand control since the enactment of the Public Land Reserve Act in 2009.
According to the Ministry of Land, Infrastructure and Transport (MOLIT) and the Korea Land and Housing Corporation (LH) on the 2nd, LH will accept applications for the sale of public reserve land for supply and demand control in the Seoul metropolitan area from the 29th of this month through October 28. The secured land will be used as public housing sites after its feasibility for development is reviewed.
Eligible properties are parcels of land measuring 3,300 square meters or more in Seoul, Gyeonggi Province, or Incheon, registered in the name of the state, local governments, individuals, or corporations. LH will select potential purchases by comprehensively evaluating factors such as population, land price appreciation rates, zoning, location, and the feasibility of housing projects.
Land for supply and demand control refers to land secured proactively, even before a project is finalized, in consideration of market conditions and its potential future uses. It is distinct from land for public development required for planned public-interest projects, such as roads or industrial complexes.
Last March, the government approved the purchase of land for supply and demand control for the first time at the Public Land Reserve Deliberation Committee. Since the system was introduced, LH has purchased only land for public development.
This measure comes as it has become difficult to secure additional large-scale public housing sites in the Seoul metropolitan area. Although the government is pursuing housing supply using public land in areas such as Yongsan District, Gwacheon, and Taereung, progress has been slow because of the need to secure relocation sites and consult with local governments and residents. As a result, the government is understood to have expanded the scope of its efforts to include the purchase of small- and medium-sized parcels of land.
The purchase price will be determined through negotiations with the owner based on the average of the appraisals conducted by two appraisal firms designated by LH. LH plans to select the target sites by the end of this year and begin signing contracts in February next year. Applications can be submitted through the LH website or by visiting or mailing them to the Capital Region Headquarters.


[email protected] Choi Ga-young Reporter