![[Seoul=NEWSIS] Reporter Hong Hyo-sik = With the impact of rising house prices and loan regulations, apartments with exclusive areas of 85 square meters or less in Seoul's sales market accounted for 80% of total transactions. On the 4th, an apartment view from Seoul Sky at Lotte World Tower in Songpa-gu, Seoul. According to Korea Appraisal Board data released on the 4th, the number of sales transactions for ultra-small apartments with exclusive areas of 21 to 40 square meters or less in the first half of this year totaled 3,103 units, a 51% increase compared to the same period last year (2,055 units). In particular, transaction volumes for ultra-small apartments in the first half of this year reached their highest level in five years since 2021 (2,450 units). Transactions for small-to-medium-sized apartments with exclusive areas of 41 to 85 square meters or less totaled 31,337 units in the first half of this year. While slightly down compared to the same period last year, transaction volumes remain high depending on the timing. August 4, 2026. yesphoto@newsis.com /Photo=Hong Hyo-sik](https://thumb.mt.co.kr/cdn-cgi/image/f=avif/21/2026/08/2026080510201583981_1.jpg)
The government and ruling party are considering a plan to allocate 1% of the National Pension Fund, amounting to 1,800 trillion won, as funding for public housing projects. As soaring pre-sale prices and declining chances of winning lotteries accelerate withdrawals from housing subscription accounts, warning lights have been triggered on the Housing Development Fund, which serves as the financial source for public housing. The aim is to inject vitality into housing supply, a core component of real estate policy, by utilizing pension funds while also creating stable investment opportunities.
According to political sources on the 5th, the National Assembly Budget and Accounts Special Committee held a meeting with the Ministry of Planning and Budget and the Ministry of Land, Infrastructure and Transport on the 30th of last month to discuss utilizing 1% of the National Pension Fund as funding for public housing projects. Lee Gwang-jae, Chair of the Budget and Accounts Special Committee from the Democratic Party of Korea, emphasized in an interview with Money Today's the300 that "even without overseas investment, if the National Pension can generate stable returns domestically while supplying public housing, it can create a virtuous cycle of national wealth without principal loss."
According to the National Pension Service, as of the end of May, the accumulated pension fund stood at 1,848.7 trillion won. If the government's plan materializes, more than 18 trillion won could serve as a catalyst for public housing projects. Lee (Chairman) outlined plans to supplement the insufficient funds of the Housing Development Fund with this capital to mass-produce "high-quality public housing." Rather than simple welfare expenditures, methods such as rental housing REITs (Real Estate Investment Trusts) are being discussed to guarantee stable returns exceeding government bond yields. A National Pension Service official also stated, "We are reviewing alternative investment models to ensure a virtuous cycle between pension profitability and housing stability, contingent on securing appropriate rates of return."
The core issue regarding the rental housing project under review by the National Pension Fund is whether it can guarantee an appropriate rate of return and operational stability. The government believes that if returns in the 4th% range, comparable to government bond yields, are achieved, the National Pension Fund can be utilized as a source for public housing supply. Conversely, it is understood that the National Pension Service maintains the position that a minimum return of 7% must be guaranteed.
in ECONOMY
