South Korea will divide Korea Land and Housing Corporation (LH) into two public agencies, separating land development and housing construction from public rental housing and residential welfare, in the first such organizational split in 17 years. The tentatively named Housing and Urban Development Corporation will handle land development, new-town projects and construction, while the Housing and Urban Asset Corporation will oversee public rentals, land banking and welfare programs. The government says the move will ease internal conflicts between speed-and-profit development work and loss-making welfare operations and help deliver 1.58 million public-led homes by 2030. LH’s finances are under severe strain: consolidated debt reached 173.6567 trillion won at the end of last year, the debt-to-equity ratio rose to 230.8%, and under the medium- to long-term financial management plan debt is projected to rise from 197.5 trillion won this year to 372.8 trillion won by 2030. Actual costs for integrated public rental units have far outpaced subsidies, leaving LH to fill the gap with bonds and Housing and Urban Fund borrowing, while rental operating losses nearly tripled since 2016. Officials have left the division of assets and liabilities and a detailed plan to cover public rental losses for later, and the reform package still does not spell out how the debt and structural rental deficit will be repaired, prompting industry and academic concern that the split is only a partial fix.