The South Korean government announced in 2026 a plan to split the Korea Land and Housing Corporation (LH) into two entities: the Housing and Urban Development Corporation, which will handle land development and housing construction, and the Housing and Urban Asset Corporation, which will manage housing welfare such as public rental housing and asset accumulation. ^[1] The South Korean government announced on April 2 that it will restructure the Korea Land and Housing Corporation (LH) by separating its operations into two distinct public corporations. ^[2] LH's debt stood at 173.7 trillion won at the end of 2025, an increase of 13.6 trillion won from the previous year, pushing its debt ratio to 230.8%. ^[3] LH's operating losses from rental housing widened from 1.17 trillion won in 2016 to 3.19 trillion won in 2025. ^[4] The South Korean government said the split was necessary because combining development and welfare functions in LH slowed housing supply and increased rental housing operational burdens. ^[5] Officials stated that the separation is necessary to improve financial stability and accelerate housing supply, which has been slowed by LH's heavy debt burden from rental housing construction. ^[6] The new structure divides LH's development and construction activities into a new entity called the Housing and Urban Development Corporation, while land reserve and rental housing management will be handled by the Housing and Urban Assets Corporation. ^[7] The government is considering a method where the new development corporation contributes a portion of its profits to the asset management corporation via a separate account in the Housing Urban Fund. ^[8]