Out of 350,000 Government-Approved Apartments, Only 14,000 Completed

Even though the government said it would build 1.5 million apartments between 2003 to 2017 to stabilize the living conditions of ordinary citizens, the actual number of apartments built has fallen short of expectations over the last 4.5 years. According to a report on the number of apartments built between 2003 and 2006 given to Rep. Kim Seok-joon (GNP) by the Ministry of Construction and Transportation yesterday, out of 390,000 apartments that were scheduled to be provided, only 14,000 apartments (3.6%) were finished as of the end of last month.

In 2003, only 11,000 (13.8%) out of a target of 80,000 apartments were built, and in 2004, only 3,000 (3%) out of a target of 100,000 were built for low-income families. In 2005 and 2006, out of planned 210,000 apartments, only 16,000 apartments had been built. This is a small number even after factoring in the short time given for their construction.

Apartment units that broke ground also fell short of expectations. Only 137,000 (35%) out of targeted 390,000 apartments between 2003 and 2006 broke ground. The government’s housing law states that low-income housing projects need to begin work within two years of a company receiving building permits, and the company can only delay breaking ground once a year.

However, the third Janghyeon district in Namyangju, Gyeonggi Province, Bugok District in Gunpo, and nine other districts have not yet started construction work three years after construction companies received permission to in 2003. The construction ministry said in response, “In some cases, the compensation process to residents or relic excavations delayed the groundbreaking timetable. If an additional 20,000 apartments as approved in 2003 and 2004 are completed by the end of this year, the number of apartments supplied to families will increase.”

The government is announcing apartments with construction permits that have not even started construction as the ones that have been provided to people. If the number of construction permissions issued is set as a base, 356,000 (91.3%) units out of a targeted 390,000 between 2003 and 2006 can be considered to be completed.

Kim Seon-deok, chief of the Construction Industry Strategy Institute, said, “The construction ministry needs to use the number of units that are completed or that have begun construction, not the number of permissions issued, as a base so as to reflect reality. The government needs to review thoroughly how many units of apartments are being built, and when they will be built, instead of focusing only on meeting its numerical goals. ”

jefflee@donga.com