Hwang Soon-sik: "Houses Owned by Multi-Homeowners with 5 or More Properties to Be Accepted as 'Gongjon Houses'"

[Asia Economy Reporter Oh Ju-yeon] Hwang Soon-sik, the Gyeonggi Province Committee Chairman and presidential candidate of the Justice Party, announced on the 14th a housing pledge to introduce 'Gongjon Housing,' a public repurchase-profit-sharing type housing. As a plan to supply Gongjon Housing, he also presented a plan to acquire houses from multi-homeowners owning five or more houses.

[Image source=Yonhap News]

On that day, Chairman Hwang held a press conference at the National Assembly Communication Office and said, "The government must dismantle the speculative system and present a roadmap to establish a universal housing stability system."

The Gongjon Housing mentioned by Chairman Hwang is a 'shared equity' housing where the individual and the public each bear 50% of the house price at purchase, and rights to the land and building are also divided 50-50. At the time of sale, the public repurchases the house, and the capital gains are shared equally between the individual and the public, making it a 'profit-sharing' housing as well.

Chairman Hwang explained, "For those purchasing Gongjon Housing, we will provide a 100% loan on the 50% of the house price that the individual must bear, and a total of 102% loan to cover acquisition tax and other incidental costs. Even if we provide a 100% loan on the individual's share, it effectively means a 50% loan on the house price, so it is not excessive compared to existing loan systems."

He also announced plans to acquire houses from multi-homeowners and supply them as Gongjon Housing.

Chairman Hwang said, "We will acquire houses from multi-homeowners owning five or more houses, and the public will succeed the current tenant lease contracts. If tenants wish, we will convert these into Gongjon Housing and supply them." He added, "If we acquire houses from owners with five or more houses, the number of houses the public can acquire is expected to reach about 870,000. We will acquire these publicly and, with tenant consent, convert them into Gongjon Housing to create a housing environment where anyone can live without burden."

Furthermore, to stabilize the jeonse and monthly rent market, he said incentives would be introduced such as reducing rental income tax and comprehensive real estate tax for fair housing landlords who accept fair rent, and reducing capital gains tax when selling to the public. He also added that the policy goal would be 'appropriate housing costs relative to income,' such as 10% of income for the lowest income quintile and 11% for the second quintile.

Chairman Hwang said, "We will expand the housing subsidy budget about eightfold to 16 trillion won to stabilize the jeonse and monthly rent market, and through policies like 'appropriate housing costs relative to income,' for example, someone with a monthly income of 2 million won will be able to live with monthly rent below 200,000 won."

He emphasized, "With these alternatives, we will resolve short- and medium-term housing instability and prioritize citizens' housing stability as a top national agenda."

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