Seoul: The government has announced plans to significantly enhance the growth of the modular housing market as a strategy to revitalize the struggling construction sector, according to the finance ministry.
According to Yonhap News Agency, the Ministry of Economy and Finance has outlined a plan to increase the order of modular homes for public rental services from 1,000 units last year to 3,000 by 2026. Additionally, the government will offer incentives for public-owned rental houses that utilize the modular construction method.
Modular homes are prefabricated structures built in factories and assembled on-site. This method is known to cut the average construction time by up to 30 percent, while also improving productivity and reducing safety accidents.
The domestic market value for modular homes has significantly increased, reaching 805.9 billion won (US$550.9 million) in 2023, up from 32.4 billion won in 2019, as reported by the ministry.