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Accelerating Housing Supply: Construction of 3rd Generation New Towns to Start Earlier

Lee Seong-hoon

Published : Jul 16, 2026 3:13 PM


The government plans to accelerate the start of construction for major districts, including the 3rd generation new towns, and mobilize all available resources, such as converting non-residential land, to boost housing supply.

The government is also accelerating the innovation of national spatial planning based on the 5-megacity and 3-special-region framework. This includes launching the development of corporate-led high-tech cities related to mega-projects, announcing the second phase of public institution relocation plans in the second half of the year, and reorganizing transportation infrastructure with a focus on provincial regions.

The Ministry of Land, Infrastructure and Transport reported these plans for key tasks in the second half of the year to President Lee Jae-myung during a ministry briefing held at the Yeongbingwan of the Blue House on July 16.

Key tasks for stabilizing housing for the public include providing a swift and sufficient supply of housing and establishing a residential safety net.

The government has decided to shorten the construction start dates for major districts, such as the 3rd generation new towns, by 1 to 2 years by minimizing land development procedures. It also plans to rapidly push for supply in prime urban locations such as Gwacheon and Taereung, which were announced in the January 29 measures.

The government will also support the start of urban renewal projects through revisions to the Urban and Residential Environment Maintenance Act, which includes support measures such as relocation assistance and simplified procedures.

For non-residential land that has been left vacant for a long time, such as commercial land, the government will expand conversions for residential use and plans to announce new candidate sites for urban complex development projects in Seoul within this month.

It will also identify new urban land supplies, such as sites for schools.

To revitalize modular housing, which allows for rapid construction, the government will enact a special law by next year that includes customized construction standards and incentives.

The order volume for modular public housing will be increased from 1,000 units last year to 3,000 units this year.

The government will also strengthen the residential safety net by providing high-quality, affordable rental housing in prime urban locations preferred by young people and the middle class, and by creating new types of public rental housing that allow for long-term residency.

To prevent jeonse (lump-sum housing lease) fraud, the government plans to push for a safe trust project in the second half of this year, where a jeonse stabilization organization manages the deposit and landlords receive monthly income without the risk of arrears.

The government is also focusing on strengthening safety management to prevent accidents and casualties at construction sites.

In preparation for the potential increase in demolition work due to the aging of social infrastructure, such as the Seosomun Overpass where a collapse occurred, the government will review safety management systems for the entire lifecycle of demolition work—from safety diagnosis to construction—and prepare improvement measures within the second half of the year.

To prevent poor construction, the government plans to strengthen monitoring of major processes, such as by making video recording mandatory, and complete legislation by the end of the year to reinforce responsibilities across all stages of construction, including ordering and design.

The government will also continue to promote growth led by provincial regions, centered on the 5-megacity and 3-special-region framework.

To support the 3 major mega-projects, the government will create corporate-led high-tech cities that combine residence, culture, research, and education, and build transportation infrastructure that allows for 30-minute travel between industrial complexes and residential areas.

The plan for the second phase of public institution relocation will be announced in the second half of the year, and the government will begin full-scale relocation procedures, including establishing relocation plans for each institution.

The mid- to long-term investment direction for transportation infrastructure will be set with a focus on provincial regions.

The government plans to sequentially announce the 5th Railway Network Plan, the 7th Airport Development Comprehensive Plan, and the 3rd Expressway Construction Plan.

Structural reforms for public transportation services used by many citizens will also be carried out.

The integration of the Korea Railroad Corporation (KORAIL) and SR is set to be completed by September, and the government has decided to proceed with remodeling aging vehicles (280 cars by 2028) and ordering new vehicles (184 cars by 2027).

For highway rest areas, the government will transition to a direct contract operation structure through public management companies with expertise and public accountability. By eliminating multi-stage structures, it aims to significantly reduce rent from an average of 33% of sales to the 8–9% level.

The government is also pushing to expand the benefits of the All-in-One Card to ease the burden of transportation costs.

It plans to strengthen linkage with the Climate, Energy and Environment Ministry's Green Card in September and local government free transit cards in November, and is reviewing a plan to add teenagers (ages 13–18) to the list of those eligible for refunds.

Regarding the parking lot at Incheon Airport, which is experiencing congestion, the government plans to increase the actual number of parking spaces by more than 7,000 by 2033.

Legislation related to mobility will also be expedited.

The government will work on enacting a special law to promote the commercialization of mobile robots and a law to guarantee the mobility rights of the transportation vulnerable, while also pushing for the permanent adoption and expansion of items covered by the freight vehicle safe freight rate system.