An Additional '230,000 Homes + α' for the Seoul Metropolitan Area — Real Estate PF Support Expanded to 47.8 Trillion Won + α
Source material is a Korean government announcement (in Korean).
On August 13, 2026, the government announced a rapid housing supply plan and comprehensive financial measures that will additionally supply '230,000 homes + α' in the Seoul metropolitan area and expand real estate PF guarantees and funding support from 26.3 trillion won to 47.8 trillion won + α.
Key facts
| Announcement date | August 13, 2026 (joint announcement by relevant ministries) |
|---|---|
| Scale of additional supply | '230,000 homes + α' in the Seoul metropolitan area (including 100,000 homes on newly designated sites). The existing supply plan targets construction starts on 1.35 million homes in the metropolitan area from 2026 to 2030 |
| Speed of construction starts | A model for the shortest-possible construction start within 37 months of a public housing site announcement. Among the sites in the measures announced on January 29, Gwacheon and Taereung are planned to start construction in 2029 and the remaining sites by 2030 |
| Redevelopment and reconstruction incentives | Higher purchase prices for rental housing when construction starts by 2028. Real estate that a redevelopment project operator acquires from cash-settled owners is exempt from acquisition tax through 2027 if construction starts within 2 years, and receives a 75% reduction from 2028 |
| Purchase-type rental housing | Acquisition tax on land and buildings for construction operators reduced by 70% through 2027 and by 50% in 2028 |
| Interest subsidy for general projects | In Seoul and Gyeonggi, a 1 percentage point subsidy on PF loan interest for construction starting within 2027, and 0.5 percentage point for construction starting within 2028 |
| Eased rules for maintenance and redevelopment projects | Consent rate for establishing a redevelopment association eased from 75% to 70%. LTV for relocation cost loans is calculated on the basis of the larger of the pre-project asset appraisal value and the post-project asset appraisal value |
| Real estate PF funds | Guarantee supply and funding support raised from 26.3 trillion won to 47.8 trillion won + α. PF guarantees of 23 trillion won this year and 33 trillion won next year |
| Young people and genuine homebuyers | Launch of the 'Youth Housing Support 3-Set' (청년 주거지원 3종 세트), creation of a universal jeonse rental housing scheme for young people, and supply of about 15% of public sale housing as equity-accumulation and profit-sharing types |
| Inquiries | Ministry of Land, Infrastructure and Transport (국토교통부), Housing Policy Division 044-201-3325 |
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On August 13, 2026, relevant ministries jointly announced the 'Plan for Rapid Housing Supply to Stabilize the Rental and Sales Markets' and the 'Comprehensive Financial Measures to Stabilize the Real Estate Market.' While strengthening implementation of the existing supply plan targeting construction starts on 1.35 million homes in the Seoul metropolitan area from 2026 to 2030, the government will additionally supply '230,000 homes + α' in the metropolitan area, including 100,000 homes on newly designated public housing sites. Guarantee supply and funding support for real estate PF will be expanded from 26.3 trillion won to 47.8 trillion won + α, the consent rate for establishing a redevelopment association will be eased from 75% to 70%, and housing projects that start construction early will receive acquisition tax reductions and subsidies for PF loan interest.
Background — why this change
To restore supply from the private sector, which accounts for more than 80% of housing supply in the Seoul metropolitan area, the government is pursuing eased building regulations together with special tax treatment. Funding support for real estate PF uses 3 trillion won from KAMCO's PF normalization fund as seed money to expand syndicated loans from the banking and insurance sectors by 5 trillion won and to build up the financial industry's own funds to 10 trillion won, and funds will be injected into sites where construction has stopped so that projects can resume. Institutional support will proceed in parallel, including a new guarantee product for maintenance and redevelopment projects and a temporary deferral of the introduction of equity capital ratio regulation for residential project sites. In addition, taking into account the need to expand housing supply and to support young people and genuine homebuyers, the total household debt growth rate for this year will be managed at around 3%, up from the originally planned 1.5%.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
How much more housing will be supplied in the Seoul metropolitan area?
'230,000 homes + α' will be additionally supplied in the Seoul metropolitan area, including 100,000 homes on newly designated sites. This is on top of the existing supply plan targeting construction starts on 1.35 million homes in the metropolitan area from 2026 to 2030.
Are the requirements for establishing a redevelopment or reconstruction association changing?
The consent rate for establishing a redevelopment association is eased from the current 75% to 70%. LTV for relocation cost loans is calculated on the basis of the larger of the pre-project asset appraisal value and the post-project asset appraisal value.
What support is there for young people?
The 'Youth Housing Support 3-Set' (청년 주거지원 3종 세트), which supports every housing type used by young people in a tailored way, will be launched, and a universal jeonse rental housing scheme for young people will be created. About 15% of public sale housing will be supplied as equity-accumulation and profit-sharing types, and the creation of a universal public rental housing type and the introduction of a public-supported private rental model operated long term for 20 years or more are also being pursued.