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Housing Policy in the Republic of Korea

Author

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  • Kim, Kyung-Hwan

    (Asian Development Bank Institute)

  • Park, Miseon

    (Asian Development Bank Institute)

Abstract

This paper evaluates housing policy in the Republic of Korea over the past several decades, describes new challenges arising from the changing environment, and draws lessons for other countries. The most important goals of the housing policy have been to alleviate housing shortages and to stabilize housing prices. To achieve these goals, the government has been engaging the private sector while establishing public sector institutions and legal framework, providing developable land, and allocating housing units to intended target groups. Thanks to the sustained and massive provision of new housing since the 1980s, the country’s absolute housing shortage has been resolved, and overall housing conditions have improved substantially. Since the turn of the new millennium, enhancing the housing welfare of low-income households and the underprivileged has been added to housing policy goals. The supply of public rental housing was increased, and a housing benefit was introduced to address the new policy goal, but more work needs to be done. Today, the Republic of Korea also faces new housing challenges regarding the country’s demographic and socioeconomic changes.

Suggested Citation

  • Kim, Kyung-Hwan & Park, Miseon, 2016. "Housing Policy in the Republic of Korea," ADBI Working Papers 570, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0570
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    References listed on IDEAS

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    1. Cho, Man & Kim, Kyung-Hwan & Renaud, Bertrand, 2012. "Real Estate Volatility and Economic Stability: An East Asian Perspective," KDI Research Monographs, Korea Development Institute (KDI), volume 127, number 201201.
    2. Chung-Ho Kim & Kyung-Hwan Kim, 2000. "The Political Economy of Korean Government Policies on Real Estate," Urban Studies, Urban Studies Journal Limited, vol. 37(7), pages 1157-1169, June.
    3. Ms. Deniz O Igan & Mr. Heedon Kang, 2011. "Do Loan-To-Value and Debt-To-Income Limits Work? Evidence From Korea," IMF Working Papers 2011/297, International Monetary Fund.
    4. Takáts, Előd, 2012. "Aging and house prices," Journal of Housing Economics, Elsevier, vol. 21(2), pages 131-141.
    5. Bertrand Renaud, 1989. "COMPOUNDING FINANCIAL REPRESSION WITH RIGID URBAN REGULATIONS: Lessons of the Korean Housing Market," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 1(1), pages 3-22, January.
    6. Leland S. Burns & Leo Grebler, 1977. "The Housing of Nations," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-03045-3.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Park, Jongmun & Yun, Sun-Jin, 2022. "Social determinants of residential electricity consumption in Korea: Findings from a spatial panel model," Energy, Elsevier, vol. 239(PE).
    3. Aida Caldera Sánchez & Alain de Serres & Filippo Gori & Mikkel Hermansen & Oliver Röhn, 2017. "Strengthening economic resilience: Insights from the post-1970 record of severe recessions and financial crises," OECD Economic Policy Papers 20, OECD Publishing.
    4. Kichan Kim & Chang Kil Lee & Hyun Woo Kim, 2022. "Understanding the Accessibility of Urban Parks and Connectivity of Green Spaces in Single-Person Household Distribution: Case Study of Incheon, South Korea," Land, MDPI, vol. 11(9), pages 1-17, August.
    5. Lo Duca, Marco & Hallissey, Niamh & Jurca, Pavol & Kouratzoglou, Charalampos & Lima, Diana & Pirovano, Mara & Prapiestis, Algirdas & Saldías, Martín & Tereanu, Eugen & Bartal, Mehdi & Giedraitė, Edita, 2023. "The more the merrier? Macroprudential instrument interactions and effective policy implementation," Occasional Paper Series 310, European Central Bank.

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    More about this item

    Keywords

    Korean housing policy; housing–macroeconomy nexus; rental housing market structural change;
    All these keywords.

    JEL classification:

    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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