President Lee Jae Myung on Friday instructed officials to build public rental housing in prime locations, such as near subway stations, rather than relegating it to less desirable sites.

Speaking at a transport ministry briefing in Sejong City, Lee said concentrating public rental units in poor locations has fueled perceptions that such housing is inferior, and argued that better sites with reasonable unit sizes could support higher security deposits and improve finances.

He also urged the Korea Land and Housing Corporation (LH) to develop housing sites directly rather than outsourcing projects to private firms, citing excessive competition and bid-rigging.

Lee also proposed organizational reform at LH, including the creation of a subsidiary to separately manage rental deposits and related debt, which he said account for roughly 100 trillion won, or approximately six-point-eight billion U.S. dollars, of the agency’s liabilities.

The president said that improving LH’s financial structure would enable faster progress on housing supply projects nationwide.

Transport Minister Kim Yun-duk said the government would supply one-point-one million public housing units and announce a new housing welfare strategy in the first half of next year, adding that LH could have greater capacity to invest more aggressively in housing welfare.

Separately, Lee called highway stops to lower their prices, noting that excessive rent and commissions are driving up consumer costs.

He warned that delayed policy implementation is effectively the same as inaction, stressing that speed and transparency are essential in areas vulnerable to corruption.