The construction of government-sponsored housing in Korea began in the early 1950s. Beyond fulfilling the housing shortage after the Korean War, it also impacted the development of housing in Korea. The aim of this study is to explore the construction and supply of government-sponsored housing and to discuss the positive and negative influences on the modern housing in Korea. In order to achieve the objectives, the pictures and floor plans, newspaper articles and the KNHC publications, which led the public housing supply from 1950 to 1960, were examined. Results indicate as follows: First, government-sponsored housing industrialized the housing production, which satisfied the volume need. The simplified floor plan and exterior, along with the western characteristics, created a new urban landscape. Second, the distinct characteristics of Korean housing were established. By emphasizing development and financial practicality, large scale housing complexes were built with simplified, characterless, and mechanical exteriors in a disconnected territory with neighbor district. Third, government-sponsored housing became the major accelerator to westernize the Korean housing culture. In conclusion, the principles of functionalism of government-sponsored housing have become the fundamental root of Korean housing since the war.