[Interview] Kim Tae-nyeon "Urban High-Rise 'Compact Type' Development Included in Supply Measures"

Closely Monitor Side Effects of Lease Law and Devise Countermeasures

Kim Tae-nyeon, Floor Leader of the Democratic Party of Korea./Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Park Cheol-eung] Kim Tae-nyeon, the floor leader of the Democratic Party of Korea, announced that supply measures including high-rise development in the metropolitan downtown area will be introduced. Policy supplements are also being prepared to minimize the side effects of amendments to the lease protection law, such as the rent ceiling system for jeonse and monthly rent.

In an interview with Asia Economy at the National Assembly floor leader's office on the 30th of last month, Floor Leader Kim said, "There is a new compact-type method when developing cities," adding, "By increasing floor height and using flat land more widely to secure green spaces or by widening the gaps between buildings, comfort and convenience can be ensured. We are discussing these as part of the upcoming supply measures."

The Seoul Metropolitan Government is already conducting a 'Compact City' project that involves high-density and mixed-use development near station areas. In exchange for increasing the floor area ratio, public contributions such as shared parking lots are received. Pilot project sites have been designated around areas such as Gongneung Station, Banghak Station, Hongdae Entrance Station, Sillim Line 110 station area, and Boramae Station. It is expected that the project sites and scale will be expanded through the government’s soon-to-be-announced housing supply measures. The United Future Party also proposed compact cities as one of their supply measures announced on the 29th of last month, advocating for a significant increase in floor area ratio to enable high-density vertical development like major cities in advanced countries.

Regarding the scale of supply, he mentioned, "There is a tentative target. We are gathering wisdom to ensure a relatively sufficient supply volume."

The principle is to thoroughly recover profits gained through deregulation such as floor area ratio relaxation. Floor Leader Kim said, "Excess profits must naturally be recovered," adding, "We will appropriately review and implement methods such as taxes and recovering rental housing quantities."

Concerning concerns about side effects such as rent increases after a certain period due to the right to renew lease contracts and rent ceilings, he stated, "Policy supplements must be made to prevent that from happening." Floor Leader Kim said, "While strengthening regulations on multiple homeowners, how can we allow the burden to be passed on to vulnerable tenants who need protection? We will closely monitor how the market moves and devise countermeasures if necessary to prevent that."

Prime Minister Chung Sye-kyun also instructed related ministries on the 31st of last month during an extraordinary Cabinet meeting, which deliberated and approved the promulgation of the amendment to the Housing Lease Protection Act, saying, "Some are concerned about side effects such as a decrease in rental housing supply," and "Closely monitor market conditions and take necessary supplementary measures promptly."

Floor Leader Kim Tae-nyeon expressed strong determination, describing delays in real estate policy legislation as a "sin." He said, "If it is not handled in the extraordinary session, it will be a big problem. The signal to the market will be very bad," adding, "If the opposition party opposes, real estate regulatory measures cannot be established, and the market will become volatile."

He emphasized, "We must always send signals that measures to restrain market disruption and speculative forces can be issued at any time."

He also criticized the Korean Confederation of Trade Unions (KCTU) for not participating in social dialogue. Floor Leader Kim said, "The KCTU is a public organization with high social responsibility," adding, "If they neglect social dialogue and grand compromise while only thinking about immediate benefits, they will lose public support and backing. Then their power will gradually weaken, and they will fail to protect the interests of their union members."

He further stated, "It was not unilaterally imposed, but the business sector, government, and labor union sufficiently discussed and reached an agreement. It is very regrettable that they rejected it."

Regarding the administrative capital, he was optimistic about the possibility of agreement between the ruling and opposition parties within the year. Floor Leader Kim said, "The opposition party seems to be avoiding getting involved in the discussion, attacking it as having political motives or being a tactic for turning the tide," adding, "However, they are not opposing the need to resolve current administrative inefficiency and declining competitiveness in some way. If discussions are conducted sincerely, an agreement can be reached." He added, "Politics is the art of the possible. Aren't there people within the opposition party who argue that it should be publicized?"

Kim Tae-nyeon, Floor Leader of the Democratic Party of Korea./Photo by Yoon Dong-ju doso7@

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