The South Korean government has vowed to continue pushing forward with its housing supply plan announced last month, despite depressed public sentiment over alleged property speculation by state employees.

The Ministry of Land, Infrastructure and Transport made the pledge on Wednesday in a joint statement with the Finance Ministry and Seoul Metropolitan Government.

The statement was apparently meant to address rising concerns that the Korea Land and Housing Corporation(LH) scandal would inevitably disrupt the state plan to build up to 836-thousand new homes nationwide, including 323-thousand in Seoul, over the next four years.

The Land Ministry said since such plans were announced on February 4, the surge in housing prices has contracted and housing transactions are on a decline.

The ministry said it is imperative to steadily advance the housing plan in order to secure stability in the real estate market, adding that the government will pursue follow-up plans.