Many Koreans feel that the provision of public rental housing should be expanded to appropriate level to accommodate low-income households. But there is no objective criteria based on life cycle cost for subsidizing the construction costs of public rental housing. Since 1998， the Korean government set the large scale of public rental housing provision plan， much of public spending used for subsidizing local governments and the Korea Land and Housing Corporation(LH). However LH， the main public developer for public rental housing， suffers from enormous debt， amounting 141.7 trillion Korea Won as of June 2013. Under this circumstance， LH can not implement public rental housing provision projects at a large scale. For sustainable and smooth functioning public rental housing policy， there is a need for setting clear criteria based on life cycle costs in providing public subsidies to local governments and public developers， such as LH. Especially the public developers should prepare transparent accounting system， dividing cost and revenue between sales houses and public rental houses. For this purpose， it is necessary that ‘the Korean Land and Housing Corporation Act’ and ‘the Local Public Corporation Act’ be amended to have a provision of the divide accounting system.