Kim Jong-in "Fundamental Reform Needed in Real Estate Market... Post-Construction Sale System and Youth Mortgage Necessary"

Kim Jong-in, Emergency Committee Chairman of the United Future Party, is delivering a keynote speech at the 'NEAR Current Affairs Forum, Basic Income System and Housing-Real Estate Policy Seminar' held at the Bankers Hall in Jung-gu, Seoul on the 14th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Lee Ji-eun] Kim Jong-in, Emergency Committee Chairman of the Future United Party, emphasized that "real estate prices cannot be controlled through taxes" and called for fundamental reform. As part of the measures, he proposed the introduction of a post-sale system and a youth mortgage system. Regarding basic income, he stressed that instead of reducing the discussion due to funding issues, a system suitable for Korea's situation should be established.

On the 14th, at the 'Basic Income System and Housing, Real Estate Policy Seminar' hosted by the Near Foundation at the Bankers' Hall, Chairman Kim stated in his keynote speech, "Can we really solve the real estate problem with taxes? I am absolutely certain that it cannot succeed."

He suggested, "To provide housing for tenants, newlyweds, and young people, the real estate market must undergo fundamental restructuring. The pre-sale system, which has continued since the 1970s, should be fundamentally revised to a system where houses can be produced and sold as finished products like commodities (post-sale system). Additionally, long-term operation of youth mortgage systems, which are implemented in other countries, is necessary."

Regarding the government's recent real estate measures, Chairman Kim pointed out, "By nature, taxes cause people to flinch when imposed, but those who bear the tax burden adapt to it. Our history shows that real estate policies have only resulted in continuously raising real estate prices."

He also issued a warning message to the Democratic Party of Korea. He said, "The Democratic Party, which holds an absolute advantage in electoral competition, is still trapped in the illusion that everything can go as planned by sheer numbers. With such illusions guiding real estate policy, our society can never achieve absolute stability."

Voices pointing out practical issues such as funding have also emerged regarding the basic income discussion. In response, Chairman Kim explained, "Just because we cannot blindly implement a perfect, idealistic basic income does not mean the discussion itself should be eliminated. If we start by saying 'this cannot be done for these reasons,' politics cannot proceed."

He emphasized the need to discuss a basic income system suited to Korea's circumstances. He said, "As the presidential election approaches according to the political schedule, each party will try to present various versions of the basic income system. If the possibilities and limitations of basic income are clearly defined, a system that can help low-income and income-less people can be created."

He also implied that political determination is necessary for the introduction of basic income. He said, "When the social health insurance system, the predecessor of the national health insurance, was introduced in 1977, all departments opposed it, but after debate, the president's decision led to the start of health insurance, which expanded nationwide over ten years. At that time, our national income was less than $1,000, but political determination was made."

Meanwhile, Kim Hyun-ah, an Emergency Committee member of the United Party who participated in the forum that day, agreed with Chairman Kim's remarks, saying, "I question whether it is appropriate for the Ministry of Land, Infrastructure and Transport to create Korea's real estate policies. A reorganization is needed regarding the Ministry wielding taxes, even though it is not the main ministry in charge." She proposed measures such as providing rental housing for low-income marginalized youth and supporting long-term low-interest mortgages for young people who want to climb the social ladder.

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