Aerial rendering of the street housing maintenance project in Nanggok A2 district, Gwanak. Provided by the Ministry of Land, Infrastructure and Transport

In the Nanggok area of Gwanak District, Seoul, 750 housing units will be supplied under public leadership. Targeting a 2028 construction start, this is the first case in which a public institution will carry out the entire process of a small-scale housing maintenance project on its own. The burden on residents is expected to decrease.

The Ministry of Land, Infrastructure and Transport announced on the 9th that it has designated Korea Land and Housing Corporation (LH) as the public implementer of the street housing maintenance project for the Nanggok A2 district in Gwanak District and will in earnest push ahead with the first public standalone implementation of a small-scale housing maintenance project. The project will supply a total of 750 units in buildings up to 25 stories on a 29,306㎡ site around 687-2, Sillim-dong.

The Nanggok A2 district was designated a redevelopment zone in 2011 but was lifted three years later due to terrain conditions and insufficient project viability. Thereafter, as LH expanded the project area and improved the design to reflect the sloped terrain to enhance viability, the development was relaunched.

LH plans to select a builder within this year, obtain approval for the project implementation plan in 2027, and aim to break ground in 2028.

Small-scale housing maintenance projects have the advantage of enabling swift refurbishment of aging low-rise residential areas, but because project size is small, profitability is low and many projects have been delayed due to limited cooperative management capacity. In response, the government has pursued institutional improvements, such as expanding the project area to up to 40,000㎡ when public entities such as LH participate and lowering fund loan interest rates. Measures have also been introduced to ease the consent requirement for establishing a cooperative from at least 80 percent of landowners and other proprietors to at least 75 percent, and to raise the criteria for the purchase price of rental housing.

Kim Young-guk, head of the Housing Supply Promotion Headquarters at the Ministry of Land, Infrastructure and Transport, said, “We will actively support institutional improvements and other measures so that standalone public implementation can be revitalized and lead the supply of housing in urban areas.”