The number of homes purchased and leased out by Korea Land & Housing Corporation (LH) that have stood empty for six months or longer has jumped more than 60% over the past two years. With some units failing to find tenants for more than eight years, cumulative losses from vacancies have approached 38 billion won ($27 million). Critics say purchases made without adequate assessment of demand are translating into prolonged vacancies and a growing fiscal burden.
According to data submitted by LH to the office of Rep. Yoo Sang-bum of the People Power Party, a member of the National Assembly's Land, Infrastructure and Transport Committee, the number of purchased rental homes vacant for six months or more rose steadily from 5,154 units in 2024 to 6,186 in 2025 and 8,304 as of the end of July this year. That marks an increase of 3,150 units, or 61.1%, in two years.
Losses have mounted as vacancies drag on. As of July, cumulative losses from vacant purchased rental homes totaled 37.96 billion won, including 29.38 billion won in forgone rent and 8.58 billion won in maintenance fees paid on behalf of absent tenants.
A considerable number of the homes have gone without tenants for extended periods. An analysis of the units with the longest vacancy records showed the longest stretch reached eight years and one month, with other cases sitting empty for more than seven years. Of the total 8,304 units, 1,351, or 16.3%, had been vacant for two years or longer. Another 556 units, or 6.7% of the total, had been empty for three years or more.
The cost of holding the empty homes is also rising. Maintenance fees LH paid in place of tenants climbed 68% from 970 million won in 2020 to 1.63 billion won last year. Spending had already reached 1.51 billion won by the end of July this year, putting it on track for a record high by year-end.
LH attributed the increase to expanded purchases of apartments and officetels — studio units used as either homes or offices. "Since late 2020, maintenance fees have risen largely because of increased purchases of apartments and officetels, which carry higher rent and maintenance costs," the corporation said. In effect, LH has bought more expensive housing but failed to match occupancy demand, leaving billions of won in taxpayer money spent each year.
"Because homes were bought in a rush to hit targets, without demand analysis or rigorous vetting of locations, vacancies in purchased rental housing have surpassed 8,300 units, including severe cases left idle for as long as eight years and one month," Yoo said.
"We have to break the vicious cycle of overreaching to buy expensive apartments and officetels and then wasting billions of won a year on maintenance fees for empty homes," Yoo added. "An exit strategy is needed for chronically vacant homes that cannot find tenants over long periods, and demand verification standards must be tightened when new homes are purchased."
