Byeon Chang-heum: "Rapid Urban Housing Supply to Alleviate Public Anxiety"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Byeon Chang-heum, Minister of Land, Infrastructure and Transport, said on the 4th, "By rapidly supplying housing in urban areas through public-led development projects, we will alleviate the vague anxiety among the public that housing supply will be insufficient."

Minister Byeon appeared on MBC Newsdesk that day and explained the purpose of the metropolitan area housing supply expansion plan announced on the same day.

Minister Byeon stated, "The recent rise in housing prices in Seoul is due to the vague anxiety that 'housing supply will no longer be sufficient,' and the apartment residence ratio and homeownership rate in Seoul are only about 42%."

He added, "The idea is to show that by changing our perspective, sufficient housing can be supplied even in urban areas."

Minister Byeon said, "There is plenty of land in Seoul where houses can be built, but it has been used inefficiently and at low density. In semi-industrial areas such as Guro, Geumcheon, and Yeongdeungpo, locations are disorderly, but if utilized well, many houses can be built."

Regarding precedents of public-led development projects, Minister Byeon said, "Public entities have led development projects such as Cheonho 1 District, Gwanak Gangnam Apartments, and Jeongneung Sky Yeonrip. There is a concern that public development results in lower quality housing and only rental units, but public development projects can also be carried out in various ways in cooperation with the private sector."

On new housing site development areas, Minister Byeon stated, "About 20 locations nationwide will be designated and developed as housing sites capable of supplying 250,000 units. Most locations have been confirmed, but discussions with local governments remain. Once these are completed in a month or two, announcements will be made in two or three phases."

Regarding views that the current public-led development projects resemble past administrations' New Town projects, Minister Byeon evaluated, "New Town projects resulted in land prices rising as associations took development profits, and original residents could not resettle. In contrast, public development projects distribute certain profits as incentives to landowners and use the rest for tenant measures and infrastructure construction, helping original residents resettle, thus differing in nature."

On the politically contentious Gadeokdo New Airport issue, Minister Byeon said, "The National Assembly is preparing a special law, and once the bill is prepared, we will have no choice but to follow it."

Regarding the Korea-Japan undersea tunnel issue, Minister Byeon said, "I think the decision should consider not only economic feasibility but also diplomacy, military power, and public sentiment."

Minister Byeon also appeared on KBS 9 o'clock news that day and expressed his views on supply measures and real estate policies. Regarding claims that capital gains tax should be eased to encourage multi-homeowners to put their properties on the market, he said, "Easing capital gains tax could be misunderstood as weakening the government's intention to manage the housing market centered on actual demand. Capital gains tax was eased before, but sales performance was not significant."

On the absence of deregulation measures for private reconstruction complexes, Minister Byeon said, "I understand that some argue for excluding the application of the price ceiling system or the reconstruction excess profit recovery system, but doing only that could raise real estate prices in the area and cause side effects contrary to the intention of stabilizing the housing market."

When asked when demanders could move into houses through this supply plan, Minister Byeon said, "For very small projects, it could be possible within a year, and for some types, it may take 3 to 4 years. However, it will not take as long as new towns."

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