Hong Nam-ki "Discussions Underway on Relaxing Floor Area Ratio and Height Restrictions and Discovering New Residential Sites"

Deputy Prime Minister for Economy Hong Nam-ki is attending the plenary session of the Planning and Finance Committee held at the National Assembly on the 28th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Song Seung-yoon] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 28th regarding the housing supply measures in the Seoul metropolitan area, "Issues such as floor area ratio and height restrictions, as well as various efforts to discover new housing sites, are being discussed together within the government."

Deputy Prime Minister Hong made this remark in response to a question from Yang Hyang-ja, a member of the Democratic Party of Korea, during the plenary session of the National Assembly's Planning and Finance Committee, asking about the progress of the housing supply measures being prepared by the government.

Hong said, "Although it has not been announced externally, we are continuously holding meetings with related agencies and are almost ready to present the supply measures to the public," adding, "Since the supply measures could cause various shocks to the market, it is difficult to discuss the details."

Regarding a question from Democratic Party member Yang Kyung-sook about whether the various real estate measures announced by the government will be effective, Hong said, "If the legislation for the recent measures (the December 16th, June 17th, and July 10th measures) passes properly within a short period, I believe the policy expectation effect will work in the market."

On the tax revenue effects of the real estate measures, Hong stated, "This measure was not intended to increase tax revenue, but by raising the comprehensive real estate holding tax rate, there will be some additional tax revenue over several years," while also noting, "95% of the people who do not pay the comprehensive real estate holding tax are not affected by this measure."

He explained, "Only 5% of our citizens pay the comprehensive real estate holding tax. This time, the government focused on those owning two or more houses and speculative forces who transfer houses within a short period, so taxation is concentrated only on those groups."

Regarding concerns that strengthening real estate taxation could lead to a surge in jeonse (long-term lease) prices, Hong emphasized, "If the three laws related to jeonse and monthly rent are not passed together in the July extraordinary session of the National Assembly, confusion in the jeonse and monthly rent market could increase," and urged, "I sincerely ask that the three laws related to jeonse and monthly rent be passed together."

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