Park Jae-hong, President of the Housing Construction Association, "Standard Construction Cost for Public Rental Housing Must Be Increased"

Park Jae-hong, the newly appointed president of the Korea Housing Construction Association, is giving a greeting speech at a press conference held at a restaurant in Yeouido-dong, Yeongdeungpo-gu, Seoul on the 9th. (Photo by Korea Housing Construction Association)

[Asia Economy Reporter Moon Jiwon] Park Jaehong, the newly appointed president of the Korea Housing Construction Association, held a press conference on the 9th at a restaurant in Yeouido-dong, Yeongdeungpo-gu, Seoul, and called for institutional improvements to support housing construction companies facing difficulties such as the increase in the standard construction cost for public rental housing.

On that day, President Park said, "The standard construction cost for public rental housing has only increased by 5% over the past 10 years." He added, "It is urgent to realize the standard construction cost to ensure smooth fund support and housing quality," and emphasized, "It should be increased by more than 15% as soon as possible compared to the current level."

In addition, President Park disclosed proposals including ▲ revitalization of the Defect Review Dispute Mediation Committee and unification of defect judgment standards ▲ strengthening supervision of housing construction project supervision work and specifying liability for damages due to poor management ▲ institutional improvements such as abolishing performance requirements when supplying public land ▲ tax support for short-term (4-year) private construction rental housing ▲ institutional improvements for acquisition tax reduction for construction rental housing operators ▲ and a 30-50% reduction in guarantee fees by the Housing and Urban Guarantee Corporation (HUG).

President Park stated, "The number of defect-related lawsuits by construction companies and defect judgment applications submitted to the Defect Review Dispute Mediation Committee reaches thousands every year," and added, "There is a need to enhance the mediation function for public defect disputes."

He further emphasized, "Since the housing industry has a significant impact on related industries and job creation, the housing market must maintain its vitality," and urged, "Please keep the flame of hope alive so that the housing market can serve as a pillar of the domestic economy."

Meanwhile, President Park is the CEO of Youngmu Construction, headquartered in Gwangju Metropolitan City, and was elected as the 12th president of the Korea Housing Construction Association in mid-last month.

This content was produced with the assistance of AI translation services.