Government Pushes to Split LH After 17 Years… Dividing Development and Asset Management

[Economy 365]

The government is pushing to split LH, which was integrated and launched in 2009, back into two separate companies after 17 years.

Under the government's current plan, the Korea Housing and Urban Development Corporation would handle land development and housing construction, while the Korea Housing and Urban Asset Corporation would take charge of rental housing operations, housing welfare, and land stockpiling.

The objective is to improve financial conditions and accelerate housing supply by separating the burdens of development projects and rental housing management.

A plan to support the asset corporation using a portion of the development corporation's profits is also under review.

However, concerns are also being raised that housing supply could actually be delayed due to financing issues for the asset corporation—which would take on the debt—and internal conflict stemming from the organizational split.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.