JEJU-DO < invest Korea

According to Yonhap News,

(Jeju = Yonhap News) Reporter Jeon Ji-hye – Jeju Province is set to create new construction demand by linking with "Green Remodeling" projects that improve the energy performance of aged buildings to revitalize the sluggish local construction industry.

Jeju Governor Oh Young-hun held a press conference at the Jeju Provincial Office on the 28th to announce a comprehensive package of measures to boost the construction sector, including these initiatives.

The province plans to translate new projects in the energy sector, such as the installation of heat pumps (electric heating and cooling systems) and green remodeling, into actual construction demand.

The province explained that the process of transforming a single house into an energy-efficient building through window replacement, insulation reinforcement, flooring and wallpaper replacement, and lighting improvements creates diverse construction demand across various sectors including facilities, windows, papering, flooring, and kitchen cabinetry.

First, the province will supply air-source heat pumps to 1,563 houses where solar power facilities have been or are scheduled to be installed this year. Public facilities, including two social welfare centers and 10 national and public daycares, will be prioritized for heat pump distribution, with plans for gradual expansion.

The introduction of a long-term installment payment system is also being pursued to alleviate the burden of initial heat pump installation costs.

To expand green remodeling for private housing, which is currently being piloted, the province will designate "Remodeling Vitalization Zones" in old downtown areas and aged residential districts. In these zones, regulations such as the building-to-land ratio and floor area ratio will be relaxed for green remodeling projects. The designation process is expected to be finalized within the first half of the year for full-scale implementation.

Furthermore, "Architectural Special Districts" for a green building transition will be designated to relax construction regulations. Approximately 4.5 billion won (approx. USD 3.3 million) will be invested in connection with the remodeling of aged public rental housing and vacant house renovations to promote the conversion of buildings into zero-energy certified structures. Residential environment improvement projects, such as the renovation and new construction of farmhouse dwellings, will also be expanded alongside green remodeling initiatives.

To encourage voluntary participation from the private sector, the province is establishing financial support models utilizing policy funds.

Under the Tourism Promotion Fund, a new loan program for the introduction of eco-friendly energy facilities has been created. Tourism accommodation businesses that install renewable energy facilities such as heat pumps and solar power for green remodeling will benefit from a preferential fixed interest rate of 1.5 percent. The loan limit is 800 million won (approx. USD 0.6 million) for individuals and 1.7 billion won (approx. USD 1.25 million) for corporations.

Rural guesthouses (Minbak) will also be eligible for support from the Agriculture and Fisheries Promotion Fund for eco-friendly green remodeling. Guidelines will be revised in the first half of the year, with a loan support announcement scheduled for July. The Wind Power Resource Sharing Fund will be utilized for energy-independent public building projects and improving the living environments of energy-vulnerable populations.

In the public construction investment sector, fiscal execution will be maximized in the first half of the year. Mid-to-long-term volumes will be secured by actively promoting national projects, such as the Jeju Outer Port development and securing preliminary feasibility studies for Jeju New Port. Remodeling projects for aged public offices, schools, and public rental housing will also be expanded.

To ensure substantial benefits for local construction companies, the province will manage subcontracting participation rates and support capacity building. Construction sites where the local subcontracting ratio falls below the 70 percent recommended by ordinance will be designated as "Special Management Sites" and subject to joint monthly inspections. Currently, eight public and seven private sites are reportedly below this standard.

"The recovery of the construction industry is the starting point of a virtuous cycle leading to jobs, income, and consumption," emphasized Governor Oh Young-hun. "We will accelerate the administrative process for permits and manage subcontracting more strictly so that local companies can receive practical benefits."

atoz@yna.co.kr



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Source Text

Source: Yonhap News (January 28, 2026)

** This article was translated from Korean.