Byeon Chang-heum, "Nationwide Real Estate Speculation Requires Expanding Organization to Suppress"

[Asia Economy Reporter Yoo In-ho] The launch of the Real Estate Transaction Analysis Institute within this year has become impossible.

Despite the government's 24 rounds of real estate regulations, a nationwide speculative frenzy is ongoing, raising the necessity for an organization to oversee the market. However, positive opinions supporting this need coexist with negative views that the existing organizations are sufficient.

According to the industry on the 27th, the launch of the Real Estate Transaction Analysis Institute remains uncertain as related bills have not even been reviewed in the National Assembly. Jin Sung-jun, a member of the Democratic Party of Korea, proposed the enactment of the "Act on Real Estate Transactions and Real Estate Service Industry" to create an expanded response team functioning as the Real Estate Transaction Analysis Institute through consultations with the Ministry of Land, Infrastructure and Transport (MOLIT), but the bill has not passed the National Assembly.

The amendment primarily grants the institute the authority to analyze, monitor, and investigate abnormal real estate transactions or illegal activities by receiving financial, taxation, and crime-related information from relevant agencies such as the National Tax Service, Financial Supervisory Service, and police.

[Image source=Yonhap News]

In this situation, the views of Byun Chang-heum, the nominee for Minister of Land, Infrastructure and Transport who will lead new real estate policies, on the Real Estate Transaction Analysis Institute are considered important. Depending on his vision, the role and function of the institute could either diminish or expand.

Byun agrees on the necessity of the Real Estate Transaction Analysis Institute. On the 23rd, during the confirmation hearing for the Minister of Land, Infrastructure and Transport at the National Assembly, in response to a question from Democratic Party lawmaker So Byung-hoon, he said, “A real estate transaction analysis institute is necessary,” adding, “There must be a real estate supervision and investigation organization to protect real estate and accumulate real estate-related databases.”

Byun stated, “Our country's real estate market is unique to an unprecedented degree worldwide,” and “Because there are hundreds or thousands of apartment units of similar sizes, it provides favorable conditions as an investment tool.”

He continued, “Since real estate prices are determined not by quality of life but by investment attributes, speculation is extremely detrimental to the public,” adding, “When abnormal transactions occur, it is necessary to systematically manage so that housing prices do not rise or fall.”

However, Byun plans to suppress real estate speculation by expanding the current Real Estate Market Illegal Activity Response Team operating under MOLIT even before the launch of the Real Estate Transaction Analysis Institute.

Byun said, “Currently, it is true that collective investment activities are frequently occurring in local areas, causing market instability,” and “We will expand the current organization and urgently deploy personnel to suppress suspicious and speculative cases until the bill is passed.”

The Real Estate Market Illegal Activity Response Team, established in mid-February last year under MOLIT, is a temporary organization authorized to operate for only one year.

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