This study begins with the need for housing supply to secure workforce in the Gaeseong Industrial Complex. Currently, 125 tenant companies and more than 50,000 North Korean workers are employed in various industries at the first stage of the industria...
This study begins with the need for housing supply to secure workforce in the Gaeseong Industrial Complex. Currently, 125 tenant companies and more than 50,000 North Korean workers are employed in various industries at the first stage of the industrial complex's development. If the planned second phase and the third phase of the project are extended to the Gaesong area, hundreds of thousands of workers will be required, but residents in the area near the industrial complex are commuting by bus or bicycle. Therefore, it is essential to secure housing for workers in order to attract outside labor and to ensure smooth operation of factories by companies within the industrial complex, as the labor force near the Kaesong Industrial Complex is not enough to secure additional workers due to the expansion of the industrial complex in the future.
In the course of industrial development, the government first examined the housing status of North Korea for housing supply. Currently, North Korea has a housing supply rate of around 70 percent and more than 90 percent of elderly homes in more than 30 years, which is worse than that of South Korea, and most of them are in need of renovating and constructing non-permanent housing. Therefore, it is expected that the supply of new houses will be more appropriate when housing is supplied as a result of the expansion of the Kaesong Industrial Complex than when the existing dwelling is renovated.
The process and type of public housing supply were investigated in South and North Korea and Singapore to establish a direction for the supply of new homes. Singapore was able to distribute public housing early on with the nationalization of land, and it is supplying low-cost housing to the people with financial support from the HDB and the National Pension Fund. About 90 percent of Singapore currently lives in public housing. On the other hand, South Korea allows private ownership of land, which makes it difficult to secure land for the distribution of public housing, and thus provides public rental housing mainly for low-income people, but even this has been confirmed to be about 7 percent of the total housing market.
Housing in Singapore is a public housing-oriented housing supply system, while South Korea is a private market-led system, with real estate prices fluctuating depending on demand and supply.
Similar to Singapore, North Korea has a very appropriate policy advantage to supply public housing because land is owned by the state. Therefore, in the process of the development of the Gaesong Industrial Complex, the supply of new houses can be provided at low prices by setting only the cost of housing construction and construction as the cost.
Housing in the Gaesong Industrial Complex was designated as a public house, but the supply type was different depending on the physical distance of the industrial complex and the city behind it. At present, the short-term labor supply plan at the time of the first phase of development is to build dormitories by company. However, when the second level of expansion is completed, it may be difficult to secure additional work force in dorms alone, or it may be difficult to build dormitories due to lack of corporate resources, or there may be workers who require independent living spaces in addition to dormitories. Therefore, public rental houses will be supplied to areas that are composed of living land between the city and the industrial complex after the second phase of expansion. Public rental housing is a type of public housing introduced to improve low-income living conditions in South Korea and Singapore, which can supply many households in a short period of time to North Korean workers who lack purchasing power. In addition, the three-step development and the extension of the Gaesong area could include redevelopment of existing residential areas, which could accommodate housing shortage problems caused by redevelopment using public rental housing.
In the case of the development of the downtown Gaesong city, the government should supply the land in a form of public distribution, not public rental, and in the case of Singapore and South Korea, the pollinators gained a large amount of capital gains by selling back to the real estate market after the expiration of the residence period, but in the case of the supply of public housing in North Korea, the government should use the redemption method to recover the public sector's profits and stabilize the real estate price.