Lee Hye-hoon: "Kim Hyun-mi's 'Apartment Bread' Remark Signals No Intention to Expand Supply"

"The Reason for Soaring House Prices Is Supply Shortage... Apartment Demand Will Not Disappear"

Lee Hye-hoon, former member of the Future United Party (predecessor of the People Power Party) / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] Former Future United Party (predecessor of the People Power Party) lawmaker Lee Hyehoon criticized Minister of Land, Infrastructure and Transport Kim Hyunmi's so-called "apartment bread" remark, calling it "a signal that they do not intend to properly expand (housing) supply."

Earlier, on the 30th of last month, Minister Kim attended a plenary session of the National Assembly's Land, Infrastructure and Transport Committee, where she expressed difficulties in resolving the shortage of apartment supply and mentioned, "If apartments were bread, I would stay up all night to make them."

On the 2nd, Lee wrote on his Facebook post regarding Minister Kim's remark, stating, "If you study real estate even a little, you can understand that the reason why Seoul's housing prices have skyrocketed is due to an extremely insufficient supply," and added, "Demand for new homes that fit my preferences, driven by income increases, household diversification, changes in lifestyle patterns and values, does not disappear just because the government orders it."

He continued, "Even if ministers and lawmakers insist that people should be satisfied with rental housing without looking at apartments, the demand for new apartments will not disappear."

He further emphasized, "In areas like Seoul, where there is hardly any vacant land to build new homes, there is no sharp way to properly increase supply other than redevelopment projects that demolish old houses and build new ones," adding, "However, according to a report from the Seoul City Council, the Democratic Party mayors of Seoul have canceled 393 redevelopment zones over 10 years, resulting in the loss of supply of 260,000 housing units. The 24 measures of the Moon Jae-in administration, which actually suppressed supply, ignited a powder keg." This is interpreted as criticism that the housing shortage, including apartments, has worsened due to government policies.

Kim Hyun-mi, Minister of Land, Infrastructure and Transport, is responding to a lawmaker's question at the full meeting of the Land, Infrastructure and Transport Committee held at the National Assembly in Yeouido, Seoul, on the morning of the 30th of last month. / Photo by Yonhap News

Former lawmaker Lee also raised suspicions that the government’s reluctance to pursue active supply policies is because it is "advantageous for elections."

He said, "Isn't it because they learned through the COVID-19 pandemic that making more people dependent on the government increases their control and is advantageous for elections?" and added, "Isn't it also because when housing prices rise, tax revenues increase, making it easier to hold elections with various subsidies?"

Meanwhile, Minister Kim explained at the Land, Infrastructure and Transport Committee plenary session on the 30th of last month that the shortage of apartment supply is due to "a decrease in apartment supply volumes in 2021 and 2022, a significant reduction in apartment permits five years ago, and many public housing sites being canceled."

She also stated, "Apartments require an absolute supply, but even now, with the shortage of apartment volumes, it is difficult for the government to supply them," implying that due to the time-consuming nature of apartment construction, it is hard to prepare immediate supply measures.

However, Minister Kim announced plans to resolve the rental housing shortage by supplying multi-family houses and villas instead of apartments. She said on the day, "We will supply multi-family houses, villas, etc., with good quality as part of the rental housing measures," and added, "If rental supply measures are implemented quickly, they can contribute to market stabilization, and I think the market will stabilize around next spring."

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