Introduction

Background and Purpose of Research

The village maintenance-oriented public housing initiative, introduced in 2015, has been actively promoted across 78 business districts by 2021, primarily by developing small-scale rental housing that caters to the needs of small and medium-sized urban areas. Although the number of local government participants has grown steadily since the inception of the village maintenance- oriented public housing program, the demand for housing provision and the enhancement of residential environments has remained unmet, especially as local government participation began declining in 2018. Initially, the public housing projects managed by LH (Korea Land & Housing Corporation) within this program progressed smoothly; however, in recent years, these projects have faced delays or cancellations, largely due to escalating construction costs and the rising financial burden on local governments. Concurrently, regional village planning efforts led by residents and local governments require the development of specialized business models that respond to residents’ specific needs and foster revitalization. Unfortunately, many of these projects have been halted or abandoned, primarily due to difficulties in securing selection for government-funded initiatives. Therefore, it is necessary to ensure the effectiveness of projects that consider regional characteristics, improve poor housing conditions, establish village plans that harmonize with existing areas, and develop improvement and revitalization strategies that meet the needs of local residents.

This study aims to identify the challenges currently facing village maintenance-oriented public housing projects by conducting a comprehensive analysis of their status. Based on this assessment, the study seeks to propose strategies for revitalizing these projects to enhance regional characteristics and improve overall living conditions.

Previous Research and Concepts of Projects

Previous Research on Village Maintenance- related Public Housing Projects

Existing research on village maintenance-oriented public housing projects is broadly categorized into studies on village maintenance plans and strategies for revitalizing rural villages and small to medium-sized local cities. Key studies in village maintenance planning include those by Kim Sang-Bum et al. (2012) [1], Kim Jeong-Kyu et al. (2014) [2], Kim Ok-Yeon (2018) [3], and Park Mi-Gyu et al. (2022) [4]. Kim Sang-Bum et al. (2012) argued that to establish a plan for improving village conditions and fostering a comfortable living environment, it is essential to define the direction of village maintenance through active resident participation and to advocate for improvements in facility planning and legal frameworks. Kim Jeong-Kyu et al. (2014) emphasized the importance of enhancing welfare provisions and infrastructure, improving the aesthetic of village streets, and creating safe pedestrian spaces as vital components of rural village maintenance initiatives. In their 2018 study, Kim Ok-Yeon proposed reforms aimed at improving village planning in small and medium-sized cities, including the dual designation of candidate sites and the refinement of evaluation criteria, as well as strategic base planning and business methodologies. Park Mi-Gyu et al. (2022) further recommended enhancements in project selection criteria and evaluation standards, emphasizing the need for policy adjustments and a comprehensive analysis of project statuses to strengthen project outcomes. Previous studies on village renovation plans have been used as reference materials for enhancing the execution of renovation projects, exploring strategies for revitalizing village plans and improving related systems, and establishing survey indicators for analyzing factors influencing resident satisfaction.

In terms of research focused on the revitalization of rural and local small-to-medium-sized cities, significant contributions include those by Won Kwang-Hee et al. (2014) [5], Choi Sang-Hee (2015) [6], Kim Hong-Joo (2019) [7], and Kim Ye-Sung (2020) [8]. Won Kwang- Hee et al. (2014) highlighted the importance of enhancing housing quality for rural residents through a variety of services, such as distribution, education, and cultural initiatives, considering the demographic and spatial challenges associated with population decline. Choi Sang-Hee (2015) analyzed the characteristics of housing demand in rural areas, proposing appropriate housing supply types, methods, and models that align with spatial planning and housing size considerations. Kim Hong-Joo (2019), in a study on the revitalization of small and medium-sized cities in rural areas, recommended strategies based on characteristics analysis, maintenance and regeneration needs, and targeted surveys of these cities. Finally, Kim Ye-Sung (2020) offered insights from population decline trends in Japan to inform strategies for small-to-medium city revitalization in South Korea, including legislative recommendations to support the sustainable development of these urban areas. Studies on the revitalization of rural villages and small to medium-sized cities in regional areas have been utilized as reference materials for exploring research strategies, selecting development directions for residential areas, and establishing survey indicators to analyze factors contributing to village revitalization.

Concepts of Projects

The village maintenance-type public housing project is an initiative in which local governments and the Korea Land & Housing Corporation (LH) collaboratively fund public housing projects, integrating the development of customized public rental housing that aligns with local characteristics with the maintenance and improvement of village plans (Table 1). The project is governed by Articles 7 (Designation of Small-Scale Residential Areas) and 7-2 (Development of Residential Areas) of the Special Act on Public Housing.

Under this framework, public housing construction enables local governments to propose the types and specifications of rental housing that meet local demand, devise strategies for regenerating adjacent areas in connection with surrounding communities, and share project costs. Public housing design is intended to harmonize with the surrounding landscape, enhancing aesthetic and functional coherence. The surrounding area maintenance plan, or village plan, seeks to revitalize communities by upgrading infrastructure, expanding public amenities near public housing districts, actively soliciting residents’ input, and establishing comprehensive development plans for these surrounding areas.

Cost-sharing with local governments mandates that they contribute at least one-tenth of the public housing construction costs, covering trunk infrastructure installation expenses, various development contributions, and village maintenance planning costs in consultation with LH. The proposal evaluation criteria for the village renovation-type public housing project consist of factors such as site suitability, demand feasibility, the commitment of local governments and resident interest, the validity of surrounding area renovation plans, and additional points, as shown in Table 2.

As depicted in Figure 1, the Ministry of Land, Infrastructure, and Transport evaluates and selects projects proposed by local governments based on cost-sharing provisions, types of rental housing proposed, and the surrounding area maintenance plans. Upon project selection, an agreement is established between participating entities, after which the selected local governments proceed with the project, incorporating the surrounding area maintenance plan. Final approval from the Ministry of Land, Infrastructure, and Transport is required before commencing housing construction, ensuring that project execution aligns with regulatory standards and community objectives [9].

Figure 1.

Procedures for Promotion of Village maintenance-type Public Housing Projects [11, 12].

Residential conditions in small and medium- sized cities

Small and medium-sized cities in Korea, defined as urban areas with populations under 500,000 located outside the metropolitan region, comprise approximately 61% of the nation’s 229 local governments under the city establishment criteria outlined in Article 7 of the Local Autonomy Act. These cities collectively house a population of 16 million, representing 32% of the national population.

An examination of the housing conditions in these small and medium-sized cities reveals that approximately 1.1 million housing units are over 30 years old, as shown in Table 3. The highest concentration of these older housing units is found in cities with populations between 50,000 and 150,000. Additionally, the proportion of young households in rural small and medium-sized cities is declining, while the aging population is steadily increasing. Consequently, there is a pressing need for housing policies that support one- and two-person households and prioritize the maintenance and renovation of aging housing stock to better address these areas’ evolving demographic and housing needs.

Research Methodology and Framework

A research System

This study conducted an analysis of the current status of village maintenance-type public housing projects to identify key indicators relevant to village planning, utilizing existing documentation and prior research. The objective is to propose strategies for revitalizing village maintenance-type public housing projects by employing frequency analysis and a modified Importance-Performance Analysis (IPA) based on resident surveys. This approach aims to guide the direction of village development and evaluate resident satisfaction with village maintenance efforts, as referenced in Figure 2.

Figure 2.

Research flow chart.

The analysis of the village maintenance-type public housing projects assessed the implementation of public housing construction and the surrounding area maintenance plans (village plans) across a total of 78 districts, including pilot projects, as shown in Table 4. This evaluation identified key issues impacting project execution and outcomes. The overall volume of projects increased consistently until 2017 but has declined since 2018, largely due to a reduced interest from local governments. This decline is attributed to recent escalations in construction and land compensation costs, which have affected local governments’ willingness to participate in the project.

Resident Survey and Analysis

To establish a direction for village development and assess resident satisfaction with village maintenance, a survey was conducted among residents in project- targeted areas. To identify the demands of residents in the Gyeongbuk and Gyeongnam regions, where the demand for village renovation-type public housing projects is expected to grow, a survey was conducted in four districts to analyze resident satisfaction and factors contributing to village revitalization.

A total of 995 residents were surveyed, as summarized in Table 5, covering four districts: Bonghwa Haejeo, Bonghwa Chunyang, Hapcheon Hotdeul, and Goseong Namoe. These areas are characterized by a high proportion of detached and aging houses (over 20 years old), indicating a need for improvements and revitalization of the overall living environment.

The survey sample included a balanced demographic distribution, with 49% male and 51% female respondents. Age groups varied, with residents aged 60 and older constituting the largest group at 26%, followed by those in their 50s (22%), 40s (25%), and individuals aged 30 and younger (27%). The survey results were statistically robust, showing a 95% confidence level and a margin of error of ±3%.

To set village development, survey responses were analyzed across several categories: village living conditions, community relationships and activities, village economic activities, and priority areas for future village projects. A modified Importance-Performance Analysis (IPA) was utilized, with intrinsic importance calculated from regression coefficients based on overall satisfaction for each attribute. Unlike the traditional IPA grid, which sets satisfaction levels on both the Y-axis and X-axis as intersecting points, the modified IPA model applies satisfaction solely to the X-axis.

Figure 3.

Vavra’s Revised IPA Model.

In the modified IPA model, shown in Figure 3, the quadrants are interpreted as follows:

1.First Quadrant: Attributes with both high intrinsic and explicit importance (satisfaction), indicating areas where continuous effort is essential.

2.Second Quadrant: Attributes with high intrinsic but low explicit importance (satisfaction), identifying priority factors for future planning.

3.Third Quadrant: Attributes with low intrinsic and explicit importance, which are secondary considerations in future planning.

4.Fourth Quadrant: Attributes with higher explicit than intrinsic importance, suggesting factors where current efforts are adequate and may require maintenance rather than further development.

This approach, drawing from methods proposed by Kano et al. (1984) and Vavra (1997), provides a structured framework for identifying key areas for improvement and long-term management within village maintenance initiatives.

Analysis of domestic and international village maintenance project cases

A Domestic Case

Comparable examples of village maintenance initiatives within Korea include the return-to-farm rental housing projects, and the Setul Village projects. The Return-to-Farm Rental Housing Project aims to develop specialized rental housing complexes on underutilized land owned by local governments. This initiative, a collaboration between the Korea Land & Housing Corporation (LH) and local authorities, provides housing models designed to support return-to-farm households seeking to settle in rural and smaller urban areas, as shown in Table 6.

An International Case

In Germany, in response to the decline in rural youth populations and an increasingly aging demographic, long-term strategies are being developed to supply high-quality residential facilities and public infrastructure to rural areas. Efforts are focused on renovating, repairing, and expanding existing buildings, maintaining the spatial integrity and cultural context of rural communities. As shown in Table 7, an illustrative example is the “Living in One’s Hometown” residential model in Teuschnitz, where vacant, aging houses in the city center have been refurbished into modern eighth-generation rental homes. This initiative enables vulnerable residents, such as the elderly and individuals with disabilities, to remain in their hometowns, preserving their connection to familiar environments. In Woosenjoren, a residential area specifically designed for the elderly was established in the village center. This initiative provides a familiar and supportive environment, allowing elderly residents to age in place within their community.

Promotion status of Village maintenance- type public housing projects

Construction Status in Public Housing Districts

From 2015 to 2021, a total of 78 districts were selected for village maintenance-type public housing projects,as shown in Table 8. 13 districts have been completed, 19 are in the construction phase, and 43 have been selected through a competitive process. However, three districts abandoned the project prior to signing agreements

The overall volume of projects increased consistently until 2017 but has declined since 2018, largely due to a reduced interest from local governments. This decline is attributed to recent escalations in construction and land compensation costs, which have affected local governments’ willingness to participate in the project.

Among the completed districts, as shown in Table 9, there are 13, excluding Boryeong-si and Gwangju-nam gu, with one district completed in 2018, two in 2019, two in 2020, and eight in 2021. The completed project area totals 118,120 square meters, providing 1,540 households with public rental housing at a cumulative cost of 228.4 billion KRW.

A total of 19 districts are currently under construction. With the exception of Gwangju Nongseong and Gwangju Dosan, all county-level districts were selected in 2015, followed by 13 in 2016 and three in 2017. These projects encompass a combined area of 175,339 square meters, with provisions for 2,110 households and a project budget of 228.4 billion KRW. Additionally, one district was selected in 2018, two in 2019, two in 2020, and eight in 2021, covering a business area of 118,120 square meters and supplying 1,540 households with a budget of 228.4 billion KRW. Typically, most business districts experience a timeline of up to two years from agreement signing to construction commencement. However, delays in some projects have hindered efficient housing supply and development.

There are 43 districts yet to enter the construction phase, comprising 11 city-level districts and 34 county- level districts. The selection of these districts took place as follows: two in 2016, 16 in 2017, nine in 2018, nine in 2019, five in 2020, and two in 2021. Three districts, listed in Table 10, have abandoned their projects. The Namhae Bugbyeon district, selected in 2016, was initially planned to develop a business area of 12,032 square meters with 120 households, but encountered significant challenges in securing privately owned land during the compensation process. Similarly, the Busan Saha district, selected in 2017 with plans for a 5,588-square-meter area and 66 households, ultimately abandoned the project due to rising costs that increased the financial burden on local governments. Lastly, Namhae Chasan, selected in 2019 and planned for 9,542 square meters and 150 households, was also abandoned due to compensation issues, penalties, and the increased cost-sharing requirements imposed on local governments.

Although the village maintenance-type public housing project encountered challenges related to land acquisition and project pace, particularly due to district- specific land acquisition timelines, the initiative generally progressed well in its early stages. To date, 13 districts, including initial pilot projects, have been completed and are now occupied. However, several issues remain: the uniform layout of apartment buildings often results in visual disharmony with existing village aesthetics, and there needs to be shared community facilities for residents. Most small and medium- sized cities selected for public housing projects are characterized by aging infrastructure, narrow village streets lacking secondary and emergency access roads, insufficient traffic safety facilities such as parking lots and safe routes to schools, and a shortage of essential infrastructure, including waste disposal, wastewater treatment, and disaster prevention facilities. Consequently, there is a pressing need to establish a convenient and livable environment by not only increasing public housing supply but also addressing environmental deficiencies and enhancing local living conditions through comprehensive village maintenance- type public housing projects.

Promotion status of surrounding area maintenance plan (Village plan)

Examples of village planning projects tailored to regional characteristics include initiatives in Jeonnam Hampyeong, Gyeongbuk Cheongsong, and Chungbuk Goesan, as shown in Table 11. Three projects have been completed in the Jeonnam Hampyeong district: Daedong-ro maintenance, the Hyanggyo Village capacity-building project, and the Daedong Enoki Forest revitalization project. In the Gyeongbuk Cheongsong district, four projects have been realized, including a shared residence for elderly individuals living alone, a revitalization initiative for the traditional market, the establishment of a safety village, and the creation of a guest village. However, in Chungbuk Goesan, only two projects have reached completion. Overall, only two to four projects have been completed across the three pilot locations. Different from initial plans, some village plans have been postponed or suspended due to limited resident demand. While public housing projects are progressing smoothly in most local governments, village planning projects for surrounding area renovations are not being implemented as planned. The lack of national funding allocations relative to the number of project districts makes budget acquisition challenging, preventing these projects from being executed alongside public housing initiatives. Additionally, the low selection rate is attributed to uniform plans lacking regional differentiation. Therefore, it is crucial to establish practical and region-specific plans for each project district.

Additionally, Strengthening the role of the implementer (LH) as a general project manager is also crucial. This includes providing strategic direction for new village development, offering consulting and expert advisory services, and implementing an integrated project that aligns with broader development objectives.

Analysis of Satisfaction and Activation factors for Village maintenance projects

A local resident survey was conducted to assess the effectiveness of the village maintenance-type public housing project, using a revised IPA analysis to evaluate resident satisfaction and perceived importance of various aspects of the living environment. Based on the findings, the village maintenance project was categorized into four key areas: (1) the village living environment, (2) resident relationships and community activities, (3) village economic activities, and (4) priority initiatives for future village projects. The indicators required for the survey were selected based on expert opinions, relevant literature, and previous studies. Four key indicators were identified to analyze resident satisfaction and factors contributing to village revitalization, aimed at promoting the activation of the village renovation-type public housing project.

The living conditions of a village

Analysis of satisfaction with the village’s living environment identified natural and living environmental conditions (as shown in Table 12) as areas where both importance and satisfaction levels are high, indicating that these aspects should continue to be prioritized. Public transportation and cultural and artistic environments, while rated as highly important, require focused improvements due to lower satisfaction ratings. Conversely, elements such as road traffic, pedestrian pathways, water supply and sewerage, and waste disposal were identified as factors that should be maintained, given their high satisfaction but relatively lower perceived importance [14, 15].

Relationships and Community Activities among Village Residents

A satisfaction survey on relationships and community activities among villagers identified cooperation in village tasks, cultural traditions, and involvement in organized activities (as shown in Table 13) as areas warranting ongoing focus, given their high importance and satisfaction levels. Notably, no items with high importance and low satisfaction emerged as requiring intensive improvement. In contrast, participation in village events, enhancing communication with non- residents, and fostering a community environment were deemed factors to maintain, as they show high satisfaction but relatively lower importance.

The economic activities of the village

In addition, analysis of satisfaction with the village’s economic activities revealed that cooperation in implementing joint income projects for the new village (see Table 14) should remain a focus, as both its importance and satisfaction levels are high. While local economic activities and sustainability are viewed as highly important, they currently fall short in satisfaction and require targeted improvement. Conversely, the identification and promotion of village joint income projects emerged as aspects to maintain, given their high satisfaction but relatively lower importance.

Priority Projects for Future Village Development

Furthermore, an analysis of satisfaction with future priority projects identified key areas, including the distribution and promotion of agricultural and marine products, the specialization of processed and local foods, and the enhancement of village aesthetics and living conditions, as shown in Table 15. Projects focusing on new income-generating crops and traditional culture and crafts were rated as highly important but received low satisfaction, highlighting a need for intensive improvement. Conversely, projects that should be maintained due to their high satisfaction yet lower importance include the creation of experiential and residential rural tourism villages, revitalization of village festivals, development of energy-independent villages, specialization in eco-friendly agriculture, and overall village infrastructure.

Comprehensive Analysis of Satisfaction with Village Maintenance-Type Public Housing Projects

The results of a comprehensive importance-satisfaction survey, aimed at revitalizing village maintenance-type public housing projects, are summarized in Table 16 and Figure 4. Key areas in the second quadrant include the public transportation environment, educational facilities, cultural and artistic amenities, participation in organized activities, satisfaction with local economic conditions, development of village income-generating businesses, and potential for sustainable growth. The third and fourth quadrants encompass various aspects such as garbage disposal, production-based facilities, health and medical services, resident conflict resolution, communication with external stakeholders, meeting facilitation, cultural practices, and participation in income-generating projects. These quadrants also include road traffic, general living conditions, cooperation in village tasks, identification and promotion of joint income projects, collaboration in new village income initiatives, and the enhancement of village aesthetics and settlement conditions. Continuous attention and management are required to maintain the current status of walking paths, water and sewerage systems, natural environmental quality, community spaces, new income cultivation, eco-friendly agricultural initiatives, and the distribution and sales promotion of agricultural and marine products.

Figure 4.

Revised IPA Analysis Comprehensive - Distribution chart of satisfaction and activation factors for Village maintenance projects [14, 15].

Conclusions

Since the introduction of the village maintenance- type public housing project in 2015, 78 business districts have been developed. Initially, the number and scope of these districts expanded due to active participation from local governments and strong governmental support. However, since 2018, the number of active districts has gradually declined due to decreasing local government engagement and budgetary constraints. Furthermore, core resident needs for area revitalization and a more pleasant residential environment have not been adequately addressed, hindered by limited progress in public housing construction and surrounding area maintenance (village plan). In response, the activation plan for village maintenance-type public housing projects, considering demand analysis, feasibility studies, and resident satisfaction surveys, includes the following recommendations:

Integrated Coordination of Public Housing and Village Plans: To enhance the effectiveness of the surrounding area maintenance plan (village plan), coordinated timing between public housing construction and village plan implementation is essential. This requires site selection and land acquisition in locations that integrate seamlessly with existing communities, ensuring unobstructed public housing construction. Additionally, priority improvements should be informed by resident survey results, focusing on upgrading substandard residential environments and creating suitable settlement conditions in alignment with regional characteristics. Establishing a governance framework among local governments, residents, and implementers (LH) is critical to strengthen project effectiveness, empower residents, create specialized project teams, and provide consulting and expert support.

Customized Public Housing to Meet Local Needs: Customized public housing projects should be promoted to match residents’ needs and local construction environments. This requires tailored public housing designs, Creating residential complexes that harmonize with existing villages. Additionally, expanding Barrier-Free (BF) features and welfare services will better serve local resident needs. To integrate with existing communities and foster collaboration, diverse residential options—such as detached homes or low-rise apartments—should be provided, incorporating barrier-free designs for elderly residents.

Fostering Tailored Regional Specialized Projects and Expanding Job Opportunities: Based on the results of resident surveys, it is necessary to improve the living conditions and environment of the region. Additionally, to revitalize declining small and medium- sized towns in rural areas, strategies are required to foster tailored specialized projects centered on local resources and to expand job opportunities.

Expanded Government Budget Support and Standardized Evaluation: To ensure the viability of the surrounding regional maintenance plan (village plan), increased governmental budget allocations for region-specific public housing projects are essential. Clear, standardized criteria for evaluating project proposals must also be established to improve project implementation and accountability.

This study is expected to enhance the quality of village renovation-type public housing and create livable residential environments. It aims to increase resident satisfaction, boost the potential for future village development, and provide practical guidelines for policymakers and urban planners.

While the study presents activation strategies through an analysis of the current status and challenges of the village renovation-type public housing project, it has certain limitations. These include insufficient proposals for improving project feasibility by considering connections with urban regeneration projects in small and medium-sized cities, other regional development initiatives, and nationally funded public competition projects.

Future research should focus on developing specific strategies for securing budgets, including national funding through the selection of village planning public competition projects. Additionally, it should explore ways to strengthen governance among residents, local governments, and project implementers (LH) to enhance project execution capabilities.

Additional research is needed on specific measures to secure the budget, including state funds, through the selection of a village plan contest among the contents of securing the effectiveness of the village plan as a plan to revitalize the village maintenance-type public housing projects and In order to strengthen capabilities through the establishment of governance between residents, local governments, and implementers (LH), LH and others are required to revise related laws and construction laws in order to fulfill their role as general project managers