Kim Hyun-mi: "Immediate Regulation if Gimpo and Paju Overheat"... "Sufficient Time to Actually Reside in Reconstruction" (Comprehensive)

Kim Hyun-mi "House Price Increase Rate in Gimpo and Paju Does Not Exceed 1.3 Times Inflation"
But Gimpo House Prices Rose in Last 3 Months While Inflation Fell

Reconstruction Occupancy Regulation
"Improving Residential Environment for Occupants Is the Purpose of Redevelopment"... "There Is Plenty of Time"

Minister of Land, Infrastructure and Transport Kim Hyun-mi is entering the briefing room at the Government Seoul Office in Jongno-gu, Seoul on the 17th to make an announcement regarding real estate regulation measures. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Lee Chun-hee] Kim Hyun-mi, Minister of Land, Infrastructure and Transport, hinted at the possibility of additional regulations on non-regulated areas such as Gimpo and Paju in Gyeonggi Province, where housing prices have been soaring since the announcement of the June 17 real estate measures.

On the 26th, Minister Kim appeared on MBC Radio's 'Kim Jong-bae's Focus' and said, "We are continuously monitoring Gimpo and Paju, as well as other regions," adding, "If abnormal signs appear in the market, we will take action." He also added, "At the time of the June 17 measures announcement, we also considered whether to include Gimpo and Paju in the regulation targets." Regarding the reason for not designating the two areas as regulated zones, he explained, "At that time, the three-month housing price increase rate in the two regions did not exceed 1.3 times the inflation rate, so they did not meet the criteria for regulated areas."

However, Gimpo City is already considered a regulated area. According to current law, the criteria for designating overheated areas among adjusted target areas include regions where the housing price increase rate over the past three months from the previous month exceeds 1.3 times the consumer price inflation rate of the respective city or province, and among these, ▲ the average monthly subscription competition rate exceeds 5:1 over the past two months or the average monthly subscription competition rate for houses under 85㎡ (exclusive area) exceeds 10:1 ▲ the volume of pre-sale right resale transactions over the past three months has increased by more than 30% compared to the same period last year ▲ the housing supply rate or owner-occupied housing ratio by city or province is below the national average.

The consumer price index for Gyeonggi Province, where Gimpo City is located, fell by 0.81% from 105.7 in March to 104.8 in May over the past three months. On the other hand, according to the Korea Real Estate Board's comprehensive housing sales price index, Gimpo City's housing prices rose slightly by 0.02%, from 101.41 to 101.43 during the same period. Although the increase is slight, since consumer prices fell, the basic quantitative criteria are met. However, Paju City recorded a 0.11% decline during the same period, failing to meet the criteria for adjusted target areas.

Regarding additional criteria, the number of pre-sale right transactions in Gimpo City over the past three months from March to June was 909, which is a 130.7% increase compared to 394 transactions in the same period last year, far exceeding the 30% increase standard. This means that it was possible to designate Gimpo as an adjusted target area even at the time of the June 17 measures announcement.

Regarding the regulation that requires two years of actual residence for reconstruction association members to purchase in speculative overheated districts in the metropolitan area, he said, "About 65.8% of Gangnam reconstruction apartments were purchased by gap investors this spring," adding, "The main purpose of redevelopment projects is to improve the living environment for residents," indicating his intention to continue the regulation. He further stated, "It takes quite some time to form an association, and there is still a long time until the sale, so there is enough time to decide whether to move in during that period."

Regarding the fact that only one aide sold a house despite Blue House Chief of Staff Noh Young-min's direct order at the end of last year for aides owning two or more houses to sell them within six months, he said, "It would have been better if they sold their houses, but I find that regrettable." He added, "There needs to be a recovery system or tax system that makes owning multiple houses, especially high-priced ones, burdensome enough to encourage selling."

Minister Kim expressed his intention to strengthen real estate holding taxes such as comprehensive real estate tax and property tax. He emphasized, "According to a recent report by the Korea Research Institute for Human Settlements, many countries around the world operate various tax systems to stabilize the real estate market," adding, "We will thoroughly review these systems and identify what can be supplemented if government measures are insufficient."

Regarding criticism that the June 17 real estate measures blocked jeonse (long-term deposit lease) loans for actual buyers, he explained, "Jeonse loan measures are designed to support low-income people who lack funds when renting jeonse," adding, "Using those funds to buy a house is against the original purpose of the loan." He also rebutted, "About 43% of gap investments use jeonse loans, but since there are supplies like the newlywed hope town for actual buyers, the criticism that the ladder for their home purchase was kicked away is not accurate."

When asked whether he would serve alongside President Moon Jae-in until the end of his term, he responded negatively, saying, "It would be like being punished."

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