Lee Jae-myung "Real Estate Solution is Recapturing Unearned Income and Expanding Long-term Rental Housing"

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, advocated the introduction of the 'Gyeonggi-do Basic Housing' (long-term public rental housing for over 30 years) as an alternative to solve the disastrous real estate problem. He also emphasized the need to establish a tax system to recover unearned income from real estate.

Governor Lee specifically announced that 50% of the housing supply provided by Gyeonggi Province in the upcoming 3rd phase new towns will be built as basic housing.

Gyeonggi-do Basic Housing is rental housing where anyone without a home can live for a long term of over 30 years. On July 21, Gyeonggi Housing and Urban Corporation announced a basic housing construction plan containing these details, stating that it will supply housing near stations within large-scale development project sites such as Hanam Gyosan, Gwacheon, Ansan Jangsang in the metropolitan area’s 3rd phase new towns, and Yongin Platform City.

At the 'Expert Meeting for the Promotion of Gyeonggi-do Basic Housing' held at the Gyeonggi Provincial Government on the 3rd, Governor Lee said, "The fundamental solution to the real estate problem is, as President Moon Jae-in pointed out, to prevent making money from real estate," emphasizing, "If you cannot make money from real estate, there is no need to have fear, it will not become an investment tool, and it will return to its original value."

He added, "The problem is that even a very small possibility of speculation causes excessive pressure for real estate investment, leading to speculation through that channel and actual success," and pointed out, "In the housing market, we must acknowledge the market economy logic where the price of goods is determined by supply and demand."

He presented the establishment of a tax system to recover unearned income and Gyeonggi-do Basic Housing as effective policies to normalize supply and demand in the real estate market.

Governor Lee explained, "To eliminate speculative factors, it is most important to establish a tax system that recovers unearned income from real estate, and furthermore, it is necessary to open a way to live without buying a house, that is, to reduce unstable demand," adding, "That is exactly what Gyeonggi Province is promoting with Basic Housing."

He continued, "Since the President also said that long-term rental housing for the middle class that can be lived in for a lifetime should be supplied, government policies should also align with that, and from the housing supply in the 3rd phase new towns, it should be in the form of lifetime housing," and added, "Gyeonggi Province plans to supply 50% of the housing supply in the 3rd phase new towns, in which the Housing and Urban Corporation participates, as basic housing such as long-term public rental or land lease-type sale housing."

At the meeting, experts including lawyer Kim Nam-geun, Kim Seong-hwan, associate researcher at the Korea Construction Industry Research Institute, Nam Gi-eop, director of the Land+Freedom Research Institute, Professor Lim Jae-man of the Graduate School of Public Policy at Sejong University, and Hong Ji-seon, Director of the Gyeonggi Province Urban Housing Office, participated.

Before the meeting, Lee Heon-wook, President of Gyeonggi Housing and Urban Corporation, explained policy proposals regarding 'Gyeonggi-do Basic Housing.'

Lawyer Kim Nam-geun said, "Gyeonggi-do’s Basic Housing, which anyone without a home can enter, is meaningful in that it introduced Western European public rental housing based on the philosophy of universal welfare," emphasizing, "To avoid the stigma effect that existing rental housing had, a considerable amount of supply should be provided near stations in the 3rd phase new towns."

Nam Gi-eop, director of the Land+Freedom Research Institute, said, "Lowering rent is important," and added, "If Gyeonggi Housing and Urban Corporation directly constructs, construction costs can be reduced by at least 15%. If construction costs decrease, rent can be lowered further."

Meanwhile, the contents of the meeting were broadcast live on the Gyeonggi Province website’s 'Social Broadcast LIVE Gyeonggi (live.gg.go.kr)'.

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