'Pincette Regulation' Possible... Designation of Eup, Myeon, Dong Units in Adjustment Target Areas Likely to Become Possible

Minister of Land, Infrastructure and Transport Kim Hyun-mi (center) is attending the full meeting of the National Assembly Land, Infrastructure and Transport Committee held at the National Assembly on the 30th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lee Chun-hee] "I understand that the designation of regulatory areas at the eup, myeon, and dong levels has been passed in the bill review subcommittee. I think it will proceed accordingly in the future." (Kim Hyun-mi, Minister of Land, Infrastructure and Transport)

The government is expected to push for the designation of regulatory areas such as adjusted target areas and speculative overheating districts, which are currently designated for real estate market regulation, at the eup, myeon, and dong levels.

On the 30th, Minister Kim Hyun-mi of the Ministry of Land, Infrastructure and Transport said during a current affairs report to the National Assembly Land, Infrastructure and Transport Committee that the designation of regulatory areas at the eup, myeon, and dong levels would follow the bill currently being promoted in the National Assembly, in response to a question from Jeong Dong-man, a People Power Party lawmaker (Busan Gijang-gun).

Rep. Jeong pointed out that in the case of Haeundae-gu near his constituency, "Because the entire area was designated as an adjusted target area due to high-priced transactions in some dongs, some dongs that were not affected were also designated," adding, "It seems problematic to restrict the property rights of residents in the area."

On the 19th, the Ministry of Land, Infrastructure and Transport designated Busan's Haeundae-gu, Suyeong-gu, Dongnae-gu, Yeonje-gu, Nam-gu, Gyeonggi's Gimpo-si, and Daegu's Suseong-gu as adjusted target areas, citing overheating in the real estate market. The ministry explained that in Haeundae-gu, Busan, there has been a surge in transaction volume and an increase in the proportion of purchases by unusual entities such as outsiders and corporations. According to the Korea Appraisal Board's monthly apartment sales price index, housing prices in Haeundae-gu rose 12.6% over the past year from October last year to last month.

However, there have been criticisms that regulations were indiscriminately applied to neighboring areas despite price stabilization in places like Bansong-dong, Haeundae-gu. In fact, according to KB Kookmin Bank's average price change per unit area of apartments by dong, while U-dong and Jung-dong, considered core rising areas, surged 18.8% and 16.2% respectively over three months from August to October, Bansong-dong saw a 0.63% decline, showing significant regional disparities in real estate price fluctuations.

Earlier, following the June 17 measures, when Jung-gu, Incheon was designated as an adjusted target area, including the uninhabited Silmi-do island, such controversies have continued. In response, in July, Kim Gyo-heung of the Democratic Party of Korea proposed a partial amendment to the Housing Act to specify the designation unit of speculative overheating districts as 'eup, myeon, dong.' In September, an amendment was also submitted to designate adjusted target areas at the eup, myeon, and dong levels. Additionally, lawmakers Kim Gyo-heung (Democratic Party) and Hong Joon-pyo (Independent) have submitted similar bills.

On the 24th, the National Assembly Land, Infrastructure and Transport Committee merged and reviewed these bills and passed an amendment to the Housing Act to designate speculative overheating districts and adjusted target areas at the 'minimum range necessary to achieve the designation purpose' at the city, county, district (si, gun, gu) or eup, myeon, dong levels. However, accepting the opinion of the committee's expert that specifying 'eup, myeon, dong' as the designation unit in the law would make designation at the housing site development district level impossible, a proviso was added stating that "the designation unit may be adjusted considering the conditions of the relevant area such as housing development districts."

Since there is not much difference in views between the ruling and opposition parties on the bill, and the Ministry of Land, Infrastructure and Transport, which was initially reported to have opposed the bill, has expressed willingness to comply with the bill as stated by Minister Kim on the day, smooth passage in the plenary session is expected.

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