The Democratic Party and the Government to Announce Housing Supply Expansion Plan Next Month: "Plan to Supply Over 100,000 Units"

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] The ruling party and the government have decided to present measures to expand housing supply for stabilizing the real estate market sometime next week.

Although there were expectations that the government might announce supply measures following the ruling party-government consultation this week, they decided to announce the supply measures after passing the real estate tax law amendment bill at the plenary session on the 4th of next month.

The ruling party and government have set a policy to utilize all available means to solve the supply issue and have been reviewing ways to increase the housing supply rate.

On this day, Koo Yoon-chul, Director of the Office for Government Policy Coordination, said at the full meeting of the Political Affairs Committee, "We intend to consider all possible options regarding supply measures."

It is known that the core of the government's announced plan will be to expand supply by raising the floor area ratio for residential land in Seoul. However, the ruling party and government are coordinating detailed opinions on the target areas for floor area ratio relaxation, the degree of relaxation, and the method of recovering profits generated from the relaxation.

As the government has stated its policy not to lift the development restriction on the Greenbelt in the Gangnam area of Seoul, the plan to utilize idle national and public land in the metropolitan area, such as the state-owned Taereung Golf Course, for residential land supply is also being actively considered.

Regarding reconstruction in the Gangnam area of Seoul, it is reported that a plan to raise the floor area ratio not only for the public sector but also for the private sector is being finalized.

The Democratic Party plans to supply more than 100,000 housing units through these measures. Along with the supply measures, institutional devices to prevent speculative real estate purchases by foreigners are also expected to be established.

Yoon Kwan-seok, Senior Deputy Chairman of the Policy Committee, said at the party floor countermeasure meeting, "We need to thoroughly examine whether foreign real estate purchases could cause cracks in real estate policies or result in discrimination against domestic citizens," adding, "While investment should be actively encouraged, swift regulatory review is necessary for speculative real estate purchases."

Park Sung-joon, the party floor spokesperson, said in a briefing after the meeting, "Floor leader Kim Tae-nyeon strongly ordered to prepare measures against real estate speculation through apartment purchases by private equity funds," and added, "If regulation is necessary, overseas cases will also be reviewed to consider various institutional measures."

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