Mar 12 • 10:16 UTC 🇰🇷 Korea Hankyoreh (KR)

Experts say, 'The prime real estate area Yongsan Business District should stop 'lotto' allocations and enhance public interest'

Experts are calling for measures to prevent lotto allocations in housing supply schemes to ensure the effective provision of public housing in South Korea.

In light of the upcoming detailed plans for the provision of 60,000 housing units in the metropolitan area announced by the Ministry of Land, Infrastructure, and Transport, experts are urging the government to design housing supply strategies that enhance public interests rather than facilitating schemes deemed 'lotto allocations'. These allocations are often criticized for providing windfall profits to select individuals, especially in the context of the Yongsan International Business District, which is considered prime real estate. Officials are expected to reveal the specifics of housing supply, including the balance of rental versus sale units, as part of the housing welfare strategy later this year. President Lee Jae-myung has consistently expressed a commitment to supplying public housing primarily as rental units rather than through sales, emphasizing the need for sustainability and equitable access. The previous September policy shifts indicated that public lands would be directly supplied by the Korea Land and Housing Corporation (LH), suggesting significant changes in how public housing is provided. This could mean that while the government seeks to increase public sales to ensure financial returns, it risks diluting the public nature of these housing programs if only the middle class can afford the benefits. Critics assert that unless strategies are devised to reclaim development profits from public sales, initiatives may merely shift from 'land business' to 'housing business', thereby perpetuating inequities. This ongoing debate indicates a crucial moment in South Korea's housing policy, where the balance between market profitability and social responsibility must be navigated carefully to prevent exacerbating existing inequalities, especially in lucrative areas like Yongsan.

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