The Yoon administration will supply the market with some 2.7 million homes by the year 2027.
The plan stands in line with the pledge made by the President on his campaign trail.
Our Finance Ministry Correspondent Eum Ji-young reports.
The Yoon Suk-yeol administration's first package of measures to address housing supply crisis focuses on keeping one of the key pledges made by President Yoon.
Over a period of five years starting next January, the government plans to supply around two.seven million homes nationwide.
Around 1.6 million houses will be supplied in the capital region, with 500-thousand in Seoul.
Finance Minister Choo Kyung-ho, during a ministerial meeting on the property market Tuesday said, houses will be supplied in high demand areas like Seoul and its surrounding regions.
"First, there will be reforms to allow more opportunities for people to buy houses in highly preferred regions. There'll also be gradual reforms to unreasonable systems of reconstruction and redevelopment to supply more homes in urban areas."
By easing regulations, roughly 520-thousand houses will be supplied by reconstructing old buildings and redeveloping run-down areas.
And some 1.3 million houses will be supplied through private-led projects which will allow buildings to have a floor-area ratio of up to 500 percent.
This will allow developers to construct taller buildings with more housing units.
The government plans to build so-called "compact cities" which are within one kilometer from subway or railway stations.
The nation's Land Minister said, it's important to supply quality houses in order to stabilize the runaway property market.
"The plan not only goes beyond providing a hands-on housing supply plan but also encompasses improving housing quality and living environment and housing welfare for socially vulnerable people"
He added that the ministry will work to resolve housing problems prone to disasters as several people living in semi-underground houses died due to the recent heavy rain in the country.
The government plans to buy those units and reconstruct them or turn them into community facilities.
Also to get more people on the property ladder, the government will provide some 500-thousand new homes to newlyweds, young adults and first-time buyers at levels below 70 percent of the market price.
Those eligible will be able to get a long term mortgage of up to 40 years at low-interest rates.
The government plans to come up with a more comprehensive housing policy for young adults in September with a revision to the law expected to be made within the first half of next year.
Eum Ji-young, Arirang news.