Byeon Chang-heum: "Sufficient Housing Supply Sites in Downtown Seoul... Establishing Development Profit Recovery Measures"

Online Meeting with Ministry of Land Journalists on the 18th
Confident as a Housing Expert with Both Theory and Practice
Committed to Expanding Quality Public Rental and Public Ownership
Concerned About Preventing Speculative Demand and Recovering Development Gains

Candidate Byeon Chang-heum of the Ministry of Land, Infrastructure and Transport is explaining the future policy direction and vision during an online meeting with the Ministry's press corps on the 18th. (Photo by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Moon Jiwon] Candidate for Minister of Land, Infrastructure and Transport Byeon Chang-heum described himself on the 18th as an expert combining both theory and practice, expressing his ambition to devise solutions for housing stability for the common people and balanced national development upon assuming office. He emphasized that he would significantly increase housing supply in downtown Seoul by easing regulations and prevent speculative demand inflows that may occur during the development process.

Candidate Byeon explained this vision and policy direction during an online meeting with reporters covering the Ministry of Land, Infrastructure and Transport on the same day. It is unusual for a ministerial candidate to hold a press briefing on the ministry’s policy direction ahead of a confirmation hearing.

Regarding this, Candidate Byeon said, "It is true that there is considerable pressure in publicly discussing policies as a candidate who has not yet received approval from the National Assembly," adding, "however, the public’s strong desire for housing market stability and the reporters’ request to hear the candidate’s views on various issues directly led to the preparation of this session."

Confident in Sufficient Housing Supply in Downtown Seoul

First, Candidate Byeon emphasized that housing issues should consider not only the absolute 'quantity' but also the 'quality.' He analyzed that despite a significant increase in housing completions in Seoul and the metropolitan area compared to the past, the reason for the sharp rise in housing prices is the need for housing with better environments, larger floor areas, and convenient transportation?qualities that improve quality of life.

He explained, "Our housing policy should focus beyond quantitative supply to sufficiently provide affordable and desirable housing within urban areas," adding, "Once the occupancy of the 300,000 units planned for the 3rd New Towns and the Seoul metropolitan housing supply plan begins in earnest, housing prices will definitely stabilize."

Candidate Byeon particularly expressed confidence, stating, "I believe that high-quality, affordable housing can be continuously and sufficiently supplied even within downtown areas." Contrary to common perceptions, there are plenty of sites available for housing supply within downtown Seoul. He said, "Seoul is about six times larger in area than Paris, France, and the residential density is significantly lower than that of France. Seoul has 307 subway stations, but the average floor area ratio near these stations is about 160%, indicating low-density development."

He also explained that the semi-industrial areas in Seoul available for housing supply are about 20㎢ (6.04 million pyeong), similar in size to Bundang New Town, and low-rise residential areas with many multi-family houses cover 111㎢ (33 million pyeong), indicating sufficient potential for future housing supply.

Candidate Byeon also mentioned easing regulations to increase housing supply. He said, "Various regulations applied for different purposes have constrained housing supply," adding, "if these regulations are reinterpreted from the perspective of residents’ lives and new urban regeneration business models are introduced, the supply of affordable housing can be expanded."

However, he expressed the view that relying solely on the private sector for such development could destabilize the real estate market again, emphasizing the need for public redevelopment and reconstruction. Candidate Byeon said, "If I take office, I will prepare and announce specific implementation plans for expanding housing supply along with institutional measures for market management and development profit recovery."

Minister of Land, Infrastructure and Transport nominee Byeon Chang-heum is arriving at the hearing preparation office set up at the Seoul Regional Land Management Office in the Government Complex Gwacheon on the morning of the 8th. (Photo by Yonhap News)

Increase Land-Leased Housing and Expand Public Rental Housing

Candidate Byeon stated that he would expand public owner-occupied housing and high-quality public rental housing, which he has emphasized since his academic days. He said, "Public rental housing should not only be supplied in sufficient quantities but also be tailored so that the middle class can live there and people with similar hobbies or tendencies can live together."

He continued, "We will expand consumer choice by supplying so-called public owner-occupied housing such as resale-condition sale housing, land-leased housing, and equity-sharing housing, which allow those who wish to own a home but cannot afford it fully to acquire one with a small burden."

Candidate Byeon also revealed concerns about the possibility of regional areas being neglected while increasing housing supply mainly in Seoul and the metropolitan area to stabilize housing prices. He said, "The fundamental cause of the housing market instability that many people worry about is excessive concentration in the metropolitan area," adding, "to overcome this problem, a strategic approach is needed to integrate the individual balanced development projects that have been pursued so far."

To this end, he explained the need to foster metropolitan areas where talent and capital can gather and to expand metropolitan network infrastructure such as metropolitan rail networks. The intention is to create opportunities for regional development by combining housing in local areas with social services, innovation spaces, and jobs.

Candidate Byeon also expressed confidence in his suitability for the position of Minister of Land, Infrastructure and Transport. He explained that he has long studied real estate issues as a scholar and has practical experience as the president of Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH).

He said, "If given the opportunity to serve as Minister of Land, Infrastructure and Transport, I will listen to the voices of the people, communicate with the market, and devote myself wholeheartedly."

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