Hong Nam-ki: "320,000 Households in Seoul and 830,000 Nationwide to Be Released... This Measure Is a 'Supply Shock'"

Hong Nam-ki, Deputy Prime Minister for Economy, Briefs on Revolutionary Expansion Plan for Housing Supply in Metropolitan Areas

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 4th that he will stabilize the housing market through a 'supply shock' measure involving 320,000 households in Seoul and 830,000 households nationwide.

At a briefing on the 'Revolutionary Expansion Plan for Housing Supply in Metropolitan Areas' held at the Gwanghwamun Government Complex in Seoul, Deputy Prime Minister Hong said in his opening remarks, "The government has judged that it is necessary to implement a 'special supply measure' that exceeds market expectations in order to completely dispel concerns about housing supply and firmly ensure housing market stability."

He explained, "The core content of this housing supply expansion plan is to establish a public-led fast-track system and secure additional new housing sites to supply a total of 830,000 houses by 2025, focusing on the metropolitan area and five major metropolitan cities." He added, "The 830,000 houses amount to about twice the annual nationwide housing supply, and the 320,000 houses to be supplied in Seoul can be considered a 'supply shock' level, accounting for 10% of Seoul's housing stock."

[Image source=Yonhap News]

The government plans to accelerate the release of the scheduled supply volume to the market by shortening the relocation period through legal revisions. He said, "We will promptly revise laws for the new supply system and fully support public housing supply agencies such as LH and SH to drastically reduce the time required for relocation to about half compared to the existing supply method." He added, "The development profits generated during the housing supply process will be used not only to expand infrastructure but also to protect tenants and small merchants who may be marginalized during the project process, so that they can be shared with the public."

He also expressed confidence that the market would stabilize through this measure. He said, "The massive expansion of housing supply will lead to a firm stabilization of the housing market. Although it may take some time until the supply and move-in are felt, there is a possibility of temporary market instability after the announcement of the measure. However, for areas showing signs of instability, we plan to proactively prevent speculative transactions by designating them as land transaction permission zones." He emphasized, "If additional measures are needed, we will immediately announce prepared high-intensity market stabilization measures."

Meanwhile, along with the nationwide supply plan of 830,000 houses, the government also announced regulatory easing measures such as reforming the subscription system to increase the general supply ratio to 50% and exempting excess profit charges on the premise of public reconstruction.

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