[Desk Column] Concerns About Ministers Formerly 'Experts'

[Asia Economy Jung Doohwan, Head of Construction and Real Estate Department] "We will build houses on idle public land and supply them at low prices to various groups such as youth and the elderly." This is the story of 'Happy Housing,' a core real estate policy introduced by the Park Geun-hye administration, which launched in 2013. At that time, former Minister Seo Seung-hwan, the inaugural head of the Ministry of Land, Infrastructure and Transport, focused particularly on 'housing above railway tracks.' His logic was that constructing buildings on elevated railway sections throughout Seoul would not incur land costs, making it an efficient source of housing supply.

However, the idea of housing above railway tracks disappeared within just a few months. During the verification process, it was concluded that the enormous costs required to resolve noise and vibration from the railway made the plan impractical. An industry insider who met with reporters at the time said, "If they had listened a little to the opinions of various experts, the idea of housing above railway tracks would never have emerged," adding, "Since the minister was an academic, it seems he only saw the positive aspects."

Within the government, evaluations of ministers with political backgrounds tend to be favorable. This is because powerful ministers can strengthen the policies of their respective ministries.

On the other hand, evaluations of so-called expert ministers from academia or industry are surprisingly harsh. This is because their views on policy tend to be too rigid, often leading them to ignore opposing opinions. In fact, during the participatory government, a minister from a certain ministry, who was a top CEO in the industry and received much spotlight, reportedly faced continuous internal friction throughout his term due to his autocratic, push-through style that disregarded staff opinions.

British political philosopher Isaiah Berlin likened people who try to explain and understand the world through a single concept or theory to 'hedgehogs.' Such people, who ignore other perspectives and believe only they are right, are like hedgehogs curled up with their quills raised, embodying 'confirmation bias.' Psychologists especially warn that experts are more prone to strong confirmation bias than ordinary people. They believe their views, accumulated through years of research and experience, are superior and close their ears to opposing opinions, falling into a vicious cycle of increasingly entrenched beliefs.

Candidate for Minister of Land, Infrastructure and Transport, Byun Chang-heum, has finally overcome the hurdles of the confirmation hearing. Although he was held back by inappropriate remarks made during his tenure as president of the Seoul Housing and Communities Corporation (SH Corporation), the ruling party pushed through the adoption of the hearing report on the morning of the 28th. With his extensive experience in academia, research institutes, and as head of major public enterprises, he is seen as the right person to resolve the real estate policy challenges faced after successive failures.

Nevertheless, the market expresses more concern than expectation toward the expert minister candidate. This is due to the confirmation bias glimpsed during the hearing process. In particular, his evaluation of the current government's housing policy seems far from the market's perception. Especially, Byun's view that "the failure of housing policy cannot be judged solely by real estate prices" appears distant from public sentiment. Just a year ago, President Moon Jae-in declared in a dialogue with the public, "I am confident about real estate. If prices cannot be controlled by the current methods, we will devise stronger measures and definitely control them." He publicly affirmed before the people that stabilizing housing prices is the core of real estate policy. So what is the result? The government’s real estate policy is undeniably a failure, given the already uncontrollable surge in housing prices. Yet, Byun's statement that "it cannot be judged by prices alone" raises doubts.

It is clear that candidate Byun is a seasoned expert in housing and urban fields. That is why the market is even more concerned. Unless there is acknowledgment and reflection on the failures of existing real estate policies, changing the head alone will likely bring no change.

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