Public-institution debt projected to reach 997.4 trillion won in 2030

  • LH projects five consecutive annual net losses through 2030.
  • LH’s cumulative losses are forecast at 5.3535 trillion won.
  • LH plans 312.8 trillion won of investment for 495,000 homes by 2030.

Debt at 37 major South Korean public institutions is projected to rise from 778.3 trillion Korean won this year to 997.4 trillion won in 2030, with Korea Land and Housing Corporation (LH) accounting for 175.3 trillion won of the increase. LH now expects net losses for five consecutive years through 2030, totaling 5.3535 trillion won, after revising its forecast for this year from a 215.3 billion won profit to a 1.2662 trillion won loss. The deterioration reflects expanded direct housing construction under the government’s public-led supply policy, which requires LH to fund land and construction costs before recovering money through sales or rental operations. LH plans 312.8 trillion won of investment to break ground on 495,000 homes from 2026 through 2030, while annual investment recovery is expected to fall to 29.6 trillion won. Its debt is forecast to reach 372.8 trillion won in 2030, with the debt ratio rising to 351.2%. LH has outlined 3.6493 trillion won of self-rescue measures, including private pre-procurement of 2.6903 trillion won in construction costs and 959 billion won in procurement and expense savings. It may seek higher government housing support prices and additional fiscal assistance if financial pressure persists. The broader public-institution plan was presented by the Ministry of Finance and Economy and is scheduled for submission to the National Assembly.

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