Changing Conditions and Quality of Housing

This article analyzes the major trends and features of the housing market. It also reviews governmental programs and policies in light of the critical issues facing this market. Our analysis reveals that the quantity and quality of housing stock for the average Korean has improved greatly over the past four decades due partly to the government's extensive involvement in land development and price regulation. The onset of the economic crisis in November 1997 prompted the government to abolish the various forms of regulations and encourage house financing by the private sector. Since then, housing types have become more diversified and a closer linkage has been established between the capital market and the housing industry. At the same time, the stock of small houses for the poor has fallen off sharply. Accordingly, the government should consider providing more financial resources for low-income housing.