Third Day of Government Questioning... Ruling and Opposition Parties Clash Over Real Estate and New Deal Fund (Comprehensive)

- National Assembly Holds Government Questioning on Economy Today
- Opposition: "President Moon's Residence Violates Farmland Act" vs Ruling Party: "Is Expensive Gangnam Retirement Allowed but Returning to Farming Not?"
- Concerns Raised Over New Deal Fund's Election Misuse
- Government: "Real Estate Uptrend Has Been Curbed"... 'Self-Praise'

Minister of Land, Infrastructure and Transport Kim Hyun-mi is attending the government-wide economic inquiry held at the National Assembly on the 16th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporters Kang Nahum and Im Chunhan] On the afternoon of the 16th, the National Assembly held a plenary session to conduct a government-wide questioning session on economic issues targeting Cabinet members. The ruling and opposition parties engaged in sharp exchanges over real estate policies, the Korean New Deal, and controversies surrounding President Moon Jae-in's residence in Yangsan.

◆Controversy over President Moon's Yangsan Residence=On this day, Ahn Byung-gil, a member of the People Power Party, focused his attacks on suspicions related to the Yangsan residence where President Moon will live after his retirement. He claimed that the farmland on the site has remained fallow since President Moon acquired it, which he argued constitutes a violation of the Farmland Act.

Ahn criticized, "The claim that President Moon Jae-in farmed the land is a blatant lie," adding, "Do you farm on asphalt roads that have been there for 24 years? Even cows would laugh at that." He further stated, "The president exploited the fact that the land is designated as farmland on cadastral maps, falsely stating on the farmland acquisition qualification certificate that he farmed the land, thereby using it to purchase new farmland."

Ahn summoned Kim Hyun-soo, Minister of Agriculture, Food and Rural Affairs, asking, "If someone obtains farmland acquisition qualification certification through fraudulent means, the law requires disposal orders and criminal prosecution. Will you take such actions?"

Minister Kim responded, "Based solely on what has been said, there is insufficient evidence to judge it as fraudulent acquisition of farmland," adding, "Even if there is no farming experience under the Farmland Act, new farmers can purchase farmland. Therefore, the presence or absence of farming experience is not a major factor in determining fraudulent acquisition."

In response to the opposition's offensive, the ruling party actively defended President Moon. Go Min-jung, a member of the Democratic Party, obtained answers from Minister Kim Hyun-mi of Land, Infrastructure and Transport and Minister Kim Hyun-soo confirming that the sale of President Moon's Yangsan land is legally sound. She then retorted, "Photos of President Moon farming before becoming president have been publicly released by the media. Is it acceptable for former presidents to retire in expensive Gangnam but not to return to rural farming?"

She added, "It reminds me of the late former President Roh Moo-hyun's residence in Bongha Village. At that time, the then Grand National Party disparaged the residence as a 'palace' and manipulated public opinion," criticizing, "Since then, through the Saenuri Party, the United Future Party, and now the People Power Party, I have never heard an apology for this."

Deputy Prime Minister for Economic Affairs Hong Nam-ki is attending the government economic sector questioning session held at the National Assembly on the 16th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

◆Opposition: "New Deal Fund Could Be Misused for Elections"=On this day, Yoo Ui-dong, a member of the People Power Party, expressed concerns about the possibility of the government’s New Deal Fund being misused for election purposes.

Yoo said, "There is an opinion that since the government has means to influence elections, the president himself is promoting the fund," raising suspicions, "If the government issues large-scale public projects such as 5G, solar power, electric vehicles, and public Wi-Fi around specific times like general or presidential elections, wouldn't the fund's short-term returns or asset values increase?"

In response, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "We have been working on this for five months, and the possibility is 0.0001%," adding, "We have never considered such a structure. The government has no room to intervene."

Hong also dismissed Yoo's claim that the New Deal Fund effectively guarantees principal with taxpayers' money, stating, "That is not true. Policy funds do not guarantee principal," and clarified, "However, the government’s investment covers the subordinated tranche of the policy fund within a 10% range."

He explained, "Although unlikely, if there is a large loss, the private sector could also suffer losses. Due to the nature of the project, if only part of it incurs losses, the government’s investment in the subordinated tranche can cover it, preventing losses from affecting the private sector."

Minister of Land, Infrastructure and Transport Kim Hyun-mi is attending the government-wide economic questioning session held at the National Assembly on the 16th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

◆Government: "Real Estate Uptrend Has Been Curbed"... Self-Praise=Minister Kim Hyun-mi stated in response to ruling party lawmakers' questions about the effectiveness of real estate measures, "Since the announcement of the July 10 and August 4 measures, the market has shown some changes."

Minister Kim explained, "The real estate uptrend in Seoul has slowed to 0.01% according to Korea Appraisal Board statistics for about 4 to 5 weeks, and the uptrend in the Gangnam 4 districts has stopped for about 4 weeks," adding, "Looking at sales and purchase volumes, sales by multi-homeowners and corporations have increased by about 30%, while purchases have decreased by 30%."

Regarding criticism that young dual-income households have been unable to receive special supply due to income requirements, she said, "We will expand apartment subscription opportunities for young people by further relaxing income requirements for newlyweds' special supply during apartment subscriptions."

Previously, the government expanded income requirements for newlywed hope towns and private housing priced over 600 million won to 130% of the average urban worker's monthly income (140% for dual-income households). However, despite the relaxation, criticisms persisted that dual-income newlyweds and others still struggled to meet income requirements and secure subscription opportunities.

Minister Kim added, "We will consider further relaxation," and "We plan to revise the subscription system to improve income requirements."

Prime Minister Chung Sye-kyun also commented on real estate trends, saying, "The uptrend has stopped for now. It has not yet declined. (Government) statistics are available," and added, "The market seems to be in a somewhat watchful mood."

Regarding opposition claims that private statistics differ, Prime Minister Chung said, "Statistics vary depending on whether they are based on actual transactions, asking prices, or sampling methods," and stated, "It is appropriate for the government to rely on official statistics, and other statistics should be considered only as references."

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