SEOUL, Aug. 16 (Yonhap) -- South Korea will supply 2.7 million new homes in the next five years by easing regulations for redevelopment and reconstruction and allowing the private sector to join downtown development projects, the transport ministry said Tuesday.
The home supply plan is the first of its kind since President Yoon Suk-yeol took office on May 10.
The government will provide 1.58 million homes in Seoul and metropolitan areas and 1.12 million houses in other provinces from 2023-2027 to stabilize the real estate market, the Ministry of Land, Infrastructure and Transport said in a statement.
Of the planned homes, 520,000 homes will be provided through redevelopment, reconstruction and government-led development projects in cities; 880,000 public homes will be available in metropolitan areas; and 1.3 million homes will be offered through private-sector development programs, it said.
The ministry said it will gradually announce designated sites for the new homes from October and release a set of measures to facilitate reconstruction of decades-old apartment complexes next month.
The government will also allow property development companies in the private sector to lead high-rise downtown residential building projects with some incentives, the statement said.
Mentioning the first residential towns of Ilsan and Bundang in Gyeonggi Province built three decades ago, the government said it will present a "master plan which will nearly recreate the towns" by 2024.
As for semi-basement apartments, better known as "banjiha" in South Korea, the government plans to help residents in such underground flats move to public homes and support renovation of banjiha homes if residents want to stay due to financial issues.
The move comes after three family members drowned at a banjiha house as flood waters filled their home in torrential downpours last week.