To address persistent housing pressures in the capital, the Democratic Party of Korea’s Seoul Metropolitan Party convened a special committee on housing supply policy to push for aggressive fiscal expansion and an enlarged National Housing and Urban Fund, according to a party meeting held on September 10, 2026.
Lawmakers emphasized that solving Seoul’s severe housing shortage—particularly for younger residents—requires stepping up public financial support rather than relying solely on private market mechanisms. According to Democratic Party lawmaker Kim Nam-geun, supplying affordable housing for youth demands substantial financial resources that current funding structures struggle to sustain.
Expanding the National Housing and Urban Fund
At the National Assembly meeting, lawmakers focused on structural strains within the National Housing and Urban Fund. According to Kim Nam-geun, high-cost public initiatives like new purchase-lease programs require annual allocations of approximately 6조원.
Because these long-term projects do not yield immediate financial recovery for entities like the Korea Land and Housing Corporation (LH), the national budget typically covers about 60% of the cost while the housing fund covers the remaining 40%. Lawmakers warned that this division steadily depletes the fund, undermining its capacity to finance new public housing projects such as youth-focused units in Seoul.
Previously, the Ministry of Land, Infrastructure and Transport prepared a fund expansion proposal valued at 1조1천억원 규모. However, Democratic Party officials expressed concern that incremental yearly increases are insufficient, prompting internal discussions to scale the initiative closer to 6조 원 정도로 확대하는 방안 by incorporating future response funds.
Institutional Push Through Regular Committee Meetings
Lawmaker Oh Gi-hyung noted that public land developments and purchase-type rentals necessitate direct national treasury injections. He stated that the party is reviewing current government budget proposals and examining whether allocations within future response funds can be specifically redirected toward youth housing supply.
To maintain momentum, the Democratic Party decided to regularize the housing supply special committee. Lawmaker Kim Young-bae emphasized that the ongoing legislative session provides a direct avenue to coordinate policies and budgets through the Land, Infrastructure and Transport Committee, the Finance and Economy Committee, and the Public Administration and Security Committee to secure comprehensive lease and housing stability measures for citizens.