The South Korean government will substantially ease regulations on urban living homes (dosihyeong saenghwal jutaek) to supply 41,000 non-apartment units by next year and 110,000 units by 2030. Urban living homes near subway stations will be allowed to be built up to 700 units, while parking and right-to-light regulations will also be relaxed. The government will also listen to on-site concerns and provide tailored solutions to expedite the construction of 100,000 units in regulated areas of the Seoul metropolitan region, where groundbreaking has been delayed for more than a year after project approval.
The Ministry of Land, Infrastructure and Transport (MOLIT) on Wednesday unveiled measures to introduce new non-apartment supply models and expand financial support for non-apartment projects. Following the first set of measures announced on the 22nd, which allowed unlimited acquisition of rental housing in regulated areas, the additional measures focus on single-person households, which account for 40 percent of all households in Seoul. The plan centers on regulatory improvements to promote the supply of urban living homes and premium studios and officetels, expanded construction financing support for non-apartment projects, and the operation of an on-site grievance resolution support center.
First, the government will provide incentives for urban living homes, which can be quickly supplied on small plots of land in urban centers, with a target of approving 26,000 units by 2027 and 77,000 units by 2030. Supply of urban living homes reached 120,000 units in 2012 but plunged to around 5,000 units annually since 2023 due to the real estate project financing (PF) crisis and other factors.
Accordingly, the government will encourage expanded supply of urban living homes by easing limits on the number of units and floors and improving construction regulations such as right-to-light and parking. The current cap of fewer than 300 units will be raised by 2030 to 500 units in semi-residential, commercial, and industrial zones, and to 700 units in subway station areas. The right-to-light regulation, which had required a separation of more than 50 percent of the building's height for buildings 10 meters or taller, will be eased to a 5-meter separation distance for buildings between 10 and 17 meters in height. The scope of parking regulation easing will also be expanded from 20-50 percent to 50-70 percent, and the installation of automated valet robot parking will be permitted when deemed not to disrupt the residential environment.
Vacant retail and office spaces will be converted into premium studios and officetels to supply more than 15,000 units over two years and more than 33,000 units by 2030. The Korea Land and Housing Corporation (LH) will continue to expand its remodeling program for converting non-residential facilities into residential ones, currently underway for 2,000 units. Knowledge industry centers in general industrial areas will be temporarily allowed to be converted into officetels until next year, with urban and construction regulations such as additional parking requirements being improved. Eligibility for occupying vacant knowledge industry center dormitories will also be relaxed to allow immediate move-in.
Construction financing support for non-apartment developers will also be strengthened. Until next year, the housing fund's developer loan support for urban living homes will be temporarily expanded. For units of 60 square meters or less in exclusive area, the current limit of 70 million won (at a 3.8 percent interest rate) will be increased to 110 million won (at 3.4 percent). For units between 60 and 85 square meters in exclusive area, the limit of 70 million won (public sector only, at 4.0 percent) will be eased to 120 million won (public and private, at 3.6 percent). The government will newly establish and support fund loans for non-residential remodeling and quasi-housing mortgage guarantees, while the Korea Housing & Urban Guarantee Corporation (HUG) will newly launch non-apartment-exclusive special "PF guarantees" and "sales guarantees" to facilitate fundraising.
An on-site grievance resolution support center will also be launched to expedite the groundbreaking of 100,000 units in regulated areas of the Seoul metropolitan region where construction has been delayed. Currently, 100,000 units in regulated areas — including 94,000 apartment units and 6,000 non-apartment units — have received approval but have seen groundbreaking delayed for more than a year. MOLIT plans to set up dedicated windows at three industry associations — the Korea Housing Association, the Korea Housing Builders Association, and the Korea Developer Association — to continuously receive on-site grievances and discuss institutional improvements.
Experts said the government's non-apartment supply measures would help address urgent issues such as the rental difficulties facing young people. Park Won-gap, KB Kookmin Bank's chief real estate expert, said, "Urban living homes can be built in as little as a year and can utilize small plots of land, so they can play a firefighting role." He added, "Even with eased regulations, speculative demand is limited, and they are preferred over villas among young people, who are the main demand group, making them a realistic alternative."
Jang Woo-cheol, MOLIT's housing policy director, said, "On the 27th, Vice Minister Kim E-tak of MOLIT will preside over a meeting with urban living home developers." He added, "We will supplement and develop the supply system in line with on-site voices until the supply target is achieved."
