PUBLIC HOUSING

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The percentage of public housing mandated by law is expected to increase this year in urban redevelopment areas located in the vicinity of Seoul. The new measure is aimed at protecting residents from losing their homes due to redevelopment.

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Under the current law, construction of public housing in redevelopment areas is mandatory to help low-income households find homes. In Seoul, the percentage of public housing ranges from 10 to 15 percent. In Gyeonggi-do Province and Incheon it ranges from 5 to 15 percent. The government has decided to raise the percentage to 20 percent in redevelopment areas located in the vicinity of Seoul. In some areas, the percentage of public housing is expected to reach 30 percent, as local governments will be allowed to add another 10 percentage points to the mandatory 20-percent share.

[Soundbite] KIM HEUNG-JIN(MIN. OF LAND, INFRASTRUCTURE AND TRANSPORT) : "We need to supply public housing to prevent the deterioration of the residential environment caused by demolitions and help residents find new homes in their neighborhoods."

The government has also announced a plan on the supply of so-called social housing. This year, 176,000 apartments will be provided as social housing, including 136,000 units as public rental housing and 40,000 units as public assisted housing. These units will be provided first to newlyweds, young and elderly residents, and low-income households. Under the new measures, more people will be eligible for housing subsidies thanks to the lower income threshold. As such, 1.1 million households will receive government subsidies this year, up 17 percent from last year. The government predicts that some 1.5 million households will benefit from the new housing welfare policy in 2019.