The government and the National Assembly are working to relax regulations on dwellings constructed using modular building methods. The modular method is a smart construction technique in which standardized modules such as walls, windows, plumbing, and bathrooms are manufactured in advance at a factory, transported to the site, and assembled to complete the building. It is an eco-friendly method that can shorten construction time, reduce construction waste, and lower carbon emissions. However, it also has the drawback of being more expensive than traditional methods.
The government and the National Assembly are pushing a bill that would increase the floor area ratio and building coverage ratio for dwellings constructed using modular methods by more than 15% compared to those built using traditional methods. Major construction companies and public enterprises such as Samsung C&T, GS Engineering and Construction, and Korea Land and Housing Corporation (LH) have also made it clear that they will actively utilize this method. There are projections that if the modular method is used more widely, it will change the current construction paradigm, which involves directly pouring concrete on-site to build structures.
◆ National Assembly discusses amendment bill to ease floor area and building coverage ratios
According to the National Assembly on the 6th, the National Assembly's Land, Infrastructure, and Transport Committee is discussing three amendment bills regarding dwellings built using modular methods. The amendment proposed by Democratic Party of Korea lawmaker Han Jeong-ae and nine others, which was introduced in January, along with an amendment proposed by People Power Party lawmaker Seo Beom-soo and 12 others last July, and another amendment proposed by Democratic Party of Korea lawmaker Heo Young and 15 others last September, are under review by a subcommittee.
The bill proposed by lawmaker Han Jeong-ae and others includes changing the current legal term for dwellings built using modular methods from 'industrialized dwellings' to 'prefabricated buildings.' Dwellings built with modular methods are currently referred to interchangeably as industrialized dwellings or modular dwellings. In particular, it has been pointed out that the legal term 'industrialized dwellings' does not accurately represent the characteristics of the modular method. Therefore, lawmaker Han and others included the proposal to change it to 'prefabricated buildings' in their amendment.
The bill also includes a plan to expand the types of dwellings that can be built using modular methods to include semi-residential accommodation facilities and officetels. This means that semi-residential buildings other than apartments will also be subject to the modular method.
The bill includes easing regulations on the building coverage ratio (the ratio of the building area to the land area) and the floor area ratio (the ratio of the total floor area to the land area). For modular dwellings, it proposes providing an incentive to add 15% to the building coverage and floor area ratios normally applied to general buildings. The amendments submitted by lawmaker Seo Beom-soo and others, as well as those proposed by lawmaker Heo Young and others, also include easing regulations on building coverage and floor area ratios for modular dwellings, all suggesting a 15% increase over existing dwellings.
For instance, a site of 33,000 square meters (10,000 pyeong) that can have a floor area ratio of up to 400% can accommodate existing buildings with a total floor area of 132,000 square meters (400% applied), but it is proposed that if built with modular dwellings, an additional 15% area would allow for a total floor area of up to 151,800 square meters.
A National Assembly official noted, "Modular dwellings can shorten construction time by up to 50% compared to standard dwellings and produce less construction waste," adding that "the reduced number of on-site workers also significantly decreases safety accident risks." He explained, "However, the drawback is that the construction costs are about 30% higher than the traditional method of pouring reinforced concrete on-site, which is why the government and lawmakers intend to introduce a system that provides benefits regarding the floor area ratio and building coverage ratio to compensate for this and preserve the business viability of construction companies."
Professor Cho Bong-ho from Ajou University explained, "Modular dwellings are built by creating modules (housing components) in a factory where it is much easier to control quality and the environment than at a construction site, and then transporting them to the site for assembly. Now, it is becoming easier to set up factories to supply modular dwellings using robots or the Internet of Things (IoT)." Professor Cho added, "However, substantial initial investment is needed to establish a factory, so support at the government and National Assembly levels is required for this project," emphasizing that "other countries like Saudi Arabia are introducing various sizes of modular dwellings, and the domestic construction industry also needs such interest and regulatory easing."
◆ Construction companies shift from a site-centered paradigm to a modular-centered one
Meanwhile, domestic construction companies are also striving to expand modular projects. In January 2023, Samsung C&T signed a Memorandum of Understanding (MOU) with the Saudi Arabian sovereign wealth fund (PIF) to agree on co-investment to build modular manufacturing facilities in Saudi Arabia. Saudi Arabia is considering applying the modular method to construct 'The Line', part of the Neom City project. 'The Line' is a project to create a linear city stretching 170 kilometers with a mirror design in the northwestern Tabuk province.
GS Engineering and Construction is also working to spread the modular method. In 2020, it established a subsidiary for precast concrete (PC) manufacturing, called 'GPC', and a specialized subsidiary for wooden modular construction, 'XiGEIST'. The PC method involves creating concrete pillars, beams, slabs, and other components in a modular factory and assembling them on-site, also known as the 'prefabricated concrete' method. On the 28th of last month, GS Engineering and Construction completed a test building of a multi-family dwelling made with the PC method at their GPC factory in Eumseong, Chungcheongbuk-do. This building was designed to be applied at heights of over 30 floors. Hyundai Engineering also completed a 13-story 'Yongin Yeongdeok happy housing' project in Yongin, Gyeonggi-do, using modular methods in June 2023.
Korea Land and Housing Corporation (LH) is also utilizing modular methods in public housing construction projects with private participation. It is currently building 381 modular dwellings in A-4BL within the 'Uiwang Chopyeong Public Support Private Rental Housing Supply Promotion District,' which broke ground in December last year in partnership with a construction consortium led by Geukdong Construction. The modular dwellings supplied through this project will be built up to 22 stories high, making them the tallest modular dwellings in the country.
A construction company official remarked, "The modular method allows for easier uniform management of construction quality and can prevent safety accidents, so many construction companies are hastily investing in it."
Kim Heon-jeong, the housing policy director of the Ministry of Land, Infrastructure, and Transport, stated, "Modular dwellings will play a game-changing role in shifting the construction industry's paradigm from a site-centric approach," noting that "though construction costs are still high and the technology is underdeveloped, with future investments leading to mass production of modular products, economies of scale will emerge, making them competitive in terms of cost."