South Korea's Financial Services Commission, Ministry of Land, Infrastructure and Transport, Financial Supervisory Service and Korea Land and Housing Corporation are expanding a program that converts stalled or delayed real estate project finance sites into Korea Land and Housing Corporation rental housing. The full rollout broadens the program from distressed sites to projects at risk of construction delays because of financing constraints and extends purchases from new-build commitments to completed and near-completed properties. The expansion follows a 2025 pilot under which purchase agreements covered 12 sites totaling about 2,600 homes. Support includes an acquisition tax reduction of 70% through 2027, falling to 50% in 2028 and 15% from 2029, and an increase in Korea Land and Housing Corporation land acquisition support from 70% to as much as 80% of land costs. The program is intended to reduce developers' unsold inventory risk, support the normalization of project finance exposures and provide lower-cost urban housing for young people and newly married couples. The Financial Supervisory Service and Korea Land and Housing Corporation have completed an initial review of potential sites and are checking developers' willingness to sell. Accepted projects are expected to proceed to new-build purchase agreements or purchases of existing properties by the end of 2026, and the corporation will present the program at a distressed project finance site sale briefing on Sept. 15, 2026.

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