South Korea Lowers Remodeling Approval Rate to 70%, Accelerates H2 2026 Housing Supply

According to the government's announcement on July 14, South Korea will accelerate housing supply while tightening speculative lending controls as part of its second-half economic growth strategy. The remodeling project approval consent rate will be reduced from 75% to 70%, and 12,000 units will be started in the third new city by year-end.

The government will strengthen regulations on speculative lending and high-risk mortgage loans while managing policy lending volume. It will also establish public-purchase rental REITs to stabilize the leasing market and introduce a lease guarantee stabilization agency to manage deposit returns.