This chapter investigates the interplay between a national policy initiative and local housing inequality by examining Korea’s Innovative City development project. While the national policy intended to address housing inequality at a broad level, the development project may have unintentionally contributed to local housing inequality by creating a gap between newly constructed housing units and existing neighbourhoods. The study illustrates the importance of considering both national and local perspectives to achieve balanced housing outcomes, focusing on housing price inequality. Results show that Innovative Cities have intensified housing price inequality within their host municipalities. Closer inspection shows this rise is specifically in the villages where Innovative Cities are located, while nearby areas see stagnant or declining prices. The findings strongly indicate that the national development plan inadvertently amplified local inequalities, highlighting the necessity of a comprehensive approach that integrates both national and local perspectives.