Hong Nam-ki "Will Proceed with Ruling Party-Government Consultations on Real Estate Policy... LH Innovation Plan to be Announced in May" (Comprehensive)

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyun-jung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced that he will proceed with the ruling party-government consultations on real estate tax reform issues, including raising the comprehensive real estate tax imposition criteria, as soon as possible.

On the morning of the 21st, Hong presided over the 20th Real Estate Market Inspection Meeting at the Government Complex Seoul and said, "I believe it is not desirable for the market to be unsettled due to rumors that uncoordinated and unconfirmed matters will be finalized and implemented." He added, "We firmly warn against the possibility of the real estate market becoming unstable again," and explained, "While maintaining the principle and direction of stabilizing the real estate market and housing security under the broad framework of expanding housing supply, eradicating speculative demand, and protecting actual demand, we will proceed with the process of reviewing the issues raised so far and holding consultations between the ruling party and government as quickly as possible to promptly remove market uncertainties."

He also emphasized that follow-up measures related to supply are being implemented quickly. Hong said, "Today, the Ministry of Land, Infrastructure and Transport plans to confirm and announce the pre-sale volume of 30,000 houses, including the 3rd phase new towns, which will be implemented from July," and added, "We will proceed with follow-up procedures at a rapid pace, including the announcement of additional new housing sites at the end of April, announcement of small-scale housing sites in early May, and integrated public offerings for private proposals in May." He further stated, "After July, pre-sales for the 3rd phase new towns will begin, and the planned districts under the 2.4 measures will be officially designated, thereby broadening the public’s perception of the housing supply measures."

Regarding the 'Real Estate Speculation Eradication and Recurrence Prevention Measures' being prepared by the government following the LH employee speculation scandal, he said, "We have completed the implementation of 11 institutional improvement tasks that can be carried out internally, such as revising LH internal regulations (severe disciplinary action upon confirmation of internal information speculation) and establishing a focused property inspection team for public officials (Personnel Management Service)." He added, "Substantial measures to detect market disruption activities are already underway, including the launch of the Real Estate Transaction Analysis Planning Team (April 7), investigation of 1,228 cases reported to the permanent reporting center, tax audits on land acquisitions in new towns (523 cases), and on-site inspections of loans at three financial institutions."

He also stated, "Regarding institutionalization such as legal amendments and subordinate legislation revisions, seven out of 19 proposed bills have already been submitted, and the remaining bills are scheduled to be submitted within April." He added, "This week, subordinate legislation under the Farmland Act to improve the Agricultural Management Ledger system will be announced for legislative notice, and subordinate legislation such as the Enforcement Decree of the Income Tax and Corporate Tax Act to reduce the scope of business-use land is planned to be announced for legislative notice in May."

The LH innovation plan, including organizational restructuring, is expected to be unveiled next month. Hong said, "The LH innovation plan is being prepared in three directions: organizational and functional restructuring, establishment of internal controls to prevent speculation, and LH management innovation," and added, "Final additional discussions on major issues related to organizational and functional restructuring are planned, and the final innovation plan is scheduled to be announced in May."

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