Housing Dynamics in Korea

Building Inclusive and Smart Cities

image of Housing Dynamics in Korea

Housing in Korea has been part of the government policy development agenda for the past three decades contributing to reducing the historical housing shortage and improving the quality of dwellings. Despite its achievements, Korea now faces a housing affordability challenge as prices are too high for several social groups (i.e. newly wedded), owner occupancy levels are decreasing, and social housing is struggling to meet demand. Korea has a complex social housing system largely focused on low-income households, who still suffer from housing poverty in terms of housing stability, affordability and quality.

A holistic view on housing policy to promote a more inclusive society and sustainable economic growth is needed. To overcome the current housing challenge requires expanding the network of public housing providers by including the private and community sectors that could alleviate the government’s financial burden. Korea is linking housing and urban regeneration strategies to respond to the complex challenges of social inclusion, job creation, housing and economic revitalisation. Korea has been at the forefront of smart city development for more than a decade, which has brought benefits to Korean cities such as integrated transport systems, and it is now committed to applying the concept as a vehicle for inclusive growth.



Enhancing Korea's housing welfare policy

This chapter looks at the major elements of housing welfare policy in Korea. It begins with an exploration of housing looking at national welfare policies, their objectives and tools as they focus on the low-income households as their target population. This is followed by an examination of the Korean public housing system and its different schemes to provide low cost housing to a wide variety of social groups such as newlyweds, young people, the elderly, and low-income families. It analyses the programmes intended to facilitate access to private rental housing. A major section focuses on the different policy alternatives that Korea may follow to overcome the challenges and vulnerabilities of the housing welfare system. It covers issues such as regulation, management, the institutional framework and housing finance. Overall, the chapter emphasises the need for a network of housing providers and the consolidation of the housing programmes.


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