In late 1980's , the most significant challenge of the housing policy was to address the housing shortage in Seoul Metropolitan Area. Concentration of population within Seoul Metropolitan Area resulted in severe housing shortage and lowered the housing ownership ratio per household far below the national average, causing the housing price in the region to spiral up faster than any other region. With little area available for housing development in Seoul, the real estate price skyrocketed to a speculative level. Accordingly, the government had to change its policy paradigm to view real properties as public goods and, judging that price control alone would not be effective in containing the skyrocketing land price in the region, decided to construct a lot of housing units all at once in an effort to stabilize rising housing price and address the imbalance between supply and demand in the housing market, which culminated in the announcement of the new town construction plan on April 27, 1989 as a part of the 2 million houses construction program. With a mandate for constructing 4 new towns including Bundang, Ilsan, Pyongchon and Joongdong out of 5, KLC played a key role in meeting the policy goals of the government and brought the new town construction projects to a successful conclusion with a comprehensive mandate for implementing the project as well as authority for establishing and enforcing urban development designs including urban infrastructure facilities, building its reputation as a land development specialist. Project Goals Alleviating concentration of population and economic activities into metropolitan area to ensure balanced development across regions Building new towns in the suburban area reflective of the metropolis-specific features to resolve housing shortage issues in metropolitan area Providing livable residential districts that deliver pleasant living environment free of urban pollution Development Concept & Effects Introduction of brand new philosophy in new town construction projects   New towns aim to provide premium amenities comparable to Gangnam, Seoul in terms of transportation, culture, education and environment, stable living platform safeguarded from a broad variety of disasters/accidents and extensive area of green forestation to stimulate inflow of population, provide attractive alternatives to home buyers in Seoul and contribute significantly to suppressing the rising real estate price and over-concentration. Renovation of Regional Transportation Network in Seoul Metropolitan Area   New town construction projects provided a momentum for construction of radial road network, expansion of metropolitan subway lines and urban highway in the suburban area of Seoul that had few urban infrastructure, which made significant contribution to alleviating the over-concentration of people and wealth in Seoul by promoting exchanges and interactions between Seoul and outlying areas over an extensive regional transportation network. Incorporation of eco-environment concept   By adopting collective energy supply infrastructure and independent sewage treatment facilities, KLC delivered a pollution-free urban environment and, by introducing a development strategy that ensured sufficient availability of forest area and preservation of natural forests and hills, KLC also created a safe and convenient urban communities featuring an urban landscape in harmony with natural environment.