Kim Hyun-mi "Supply shortage due to fewer permits by past governments"... Statistics show "Peak in 2015"

Minister of Land, Infrastructure and Transport Kim Hyun-mi is leaving after completing a briefing at the plenary meeting of the National Assembly Land, Infrastructure and Transport Committee held at the National Assembly on the 29th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lee Chun-hee] The government anticipates a decrease in housing supply in Seoul and the metropolitan area next year, citing the low number of housing permits issued five years ago as the reason. However, according to actual statistics from the Ministry of Land, Infrastructure and Transport (MOLIT), the number of housing permits issued five years ago was the highest in the past decade.

On the 29th, during a MOLIT briefing at the National Assembly's Land, Infrastructure and Transport Committee, Minister Kim Hyun-mi engaged in a heated debate with Kim Eun-hye, a member of the Future United Party, over the cause of the shortage in metropolitan area housing supply. When Kim asked about the apartment move-in volumes for this year and next year in the metropolitan area, Minister Kim responded, "This year is 193,000 households, next year is 134,000 households, and 2022 is 156,000 households."

When Kim asked, "Why is 2021 lower?" Minister Kim explained, "The 2021 figure is based on permits issued in 2014-2015," adding, "The number of permits issued then was low."

However, Kim immediately rebutted Minister Kim's statement, saying, "Looking at the metropolitan area housing permit records, the permits issued in 2014-2015 were actually the highest in the past 10 years," and pointed out, "If the public sees this data, they might think the minister is lying." Minister Kim responded, "Please review the data again," and explained, "It can be confirmed by looking at the time series data."

Minister Kim had previously cited the same reasoning during an economic sector question session at the National Assembly plenary on the 23rd, where she debated with Yoon Young-seok of the United Party over the cause of housing supply shortages. At that time, Minister Kim stated, "The supply of apartments in Seoul in 2021 is 36,000 households," and explained, "The reason for this low number is that the permits issued in 2014-2015 were low." She noted that it takes 5-6 years from permit issuance to construction start and move-in. She added, "That is why since the government took office, I have repeatedly said that the supply volume in 2021 would be low."

Minister of Land, Infrastructure and Transport Kim Hyun-mi is attending the government-wide economic sector questioning session held at the National Assembly on the 23rd, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

However, according to the housing construction performance statistics provided by the Ministry of Land, Infrastructure and Transport, 2015 recorded the highest number of permits issued in the past 10 years from 2010 to last year. In 2015, the nationwide housing permits totaled 765,328 households, about 200,000 more than the 10-year average of 566,532 households.

In the metropolitan area alone, the number was 408,773 households, the highest performance recorded. In Seoul alone, 101,235 households were permitted. Although this is less than the 113,131 households in 2017, it ranks second highest in the past decade.

The same trend was observed for apartments. In 2015, nationwide apartment construction permits totaled 534,931 households, also the highest in 10 years. In the metropolitan area, the number was 271,695 households, again the highest. However, Seoul recorded 41,351 households, slightly below the 10-year average of 42,622 households.

Housing permit numbers have actually been declining since the Moon Jae-in administration began in 2017. Nationwide permits dropped from 726,048 households in 2016 to 653,441 in 2017, then continued to decrease to 554,136 in 2018 and 487,975 in 2019. Apartment permits also declined from 506,816 households nationwide in 2016 to 468,116 in 2017, 406,165 in 2018, and 378,169 in 2019.

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