Former Seoul Deputy Mayor Jin Hee-seon Publishes 'Korea Real Estate Trends'

Whether You Own a Home or Not, You Must Know Real Estate Trends!...Former Seoul Deputy Mayor Shares South Korea's Real Estate Policies and the Ten Commandments of Real Estate

[Asia Economy Reporter Jong-il Park] Jin Hee-seon, former Deputy Mayor of Administration 2 of Seoul, has published a book titled "Real Estate Trends in the Republic of Korea."

After retiring, Jin, now a special professor at her alma mater Yonsei University, published the book "Real Estate Trends in the Republic of Korea," focusing on the content she organized during her public service career.

Jin analyzed, "Housing prices have been continuously rising. After hitting a low point due to the 2008 US-originated global financial crisis, housing prices recovered around 2014 and began to rise steadily from about 2015. The rise in housing prices, which had been overshadowed by major social events such as the Sewol ferry disaster, political scandals, candlelight protests, presidential impeachment, and regime changes, began to attract significant attention starting from 2017-2018 when the Moon Jae-in administration took office and stabilized."

She also wrote about her motivation for writing the book, stating, "In response, the government has introduced 25 real estate policies under the slogan 'We will definitely stabilize the real estate market,' but these seem to have little effect."

She continued, "In this situation, some criticize the government for trying to intervene excessively in real estate, while others criticize it for not taking stronger measures. Young people are debating whether they should buy homes even by 'yeongkkeul' (borrowing to the maximum), and retired generations who own a home with their lifetime earnings are dissatisfied with the increasing taxes," highlighting these criticisms.

In particular, she reflected on questions such as, "Why do government real estate policies always seem to produce negative results? Is there a real estate policy that can satisfy all citizens? How should one read information to make successful real estate investments?"

Jin Hee-seon, who passed the Technical High Civil Service Examination in 1987 and served Seoul City for 32 years until retiring as Deputy Mayor of Administration 2 in 2020, provides sharp analyses in "Real Estate Trends in Korea as Told by the Deputy Mayor of Seoul" on the fundamental nature of real estate, reasons why government real estate policies often appear to fail, and causes of unpredictability in real estate prices. She offers insightful and striking perspectives on long-term government real estate policies and trends that people aiming to own homes should know.

Specifically, Jin emphasizes the following points in this book:

1. The value of land cannot be created by individual effort alone; even under a market economy and capitalism, land has the nature of public ownership.

2. No real estate-related policy can show effects in the short term; it is influenced by various factors over a long period but certainly follows a consistent direction.

3. While recognizing real estate as a means of asset accumulation, efforts should focus on recovering unjust profits arising in the process and on measures for those suffering from housing insecurity.

Additionally, Professor Jin suggests establishing a stable land supply system through a land bank, universalizing building and architectural uses, experimenting with social and community housing, innovatively reforming housing-related taxation, and sharing authority over real estate policies with local governments?proposals that would greatly assist current policymakers and executors of real estate policies.

Alongside this, she presents the Ten Commandments of healthy real estate investment to prevent people from being swayed by short-term housing price fluctuations, policy changes, or reckless greed that could ruin themselves.

[Author’s Academic Background]

Completed Seoul National University Advanced Construction Management Program (ACPMP)

Ph.D. in Urban Engineering, Yonsei University

Master’s in Urban Planning, Iowa State University, USA

Bachelor’s in Architectural Engineering, Yonsei University

[Author’s Career]

Current Special Professor, Department of Urban Engineering, Yonsei University

Former Deputy Mayor of Administration 2, Seoul Metropolitan Government

Born in Hampyeong, Jeonnam (1964)

Passed the 23rd Technical High Civil Service Examination (1987)

Certified Professional Engineer (1998), Registered Architect (1999)

Received the Order of Service Merit, Red Stripes (2013)

Table of Contents

Foreword 2

Recommendation 17

Chapter 1: Real Estate Has Always Been a Controversial Issue in Human History

1. Human Survival Condition, Home ?31

2. Historical Product of Development, Real Estate? 39

3. Land Ownership Debate? 47

Chapter 2: Unexpected Signs, Housing Prices Rising Too Much

1. How Much Have Housing Prices Risen? 65

2. Fivefold Difference in Housing Price Growth Rates ?80

3. Factors Driving Housing Price Increase ?89

4. Interest Rates and Liquidity? 97

5. Is Housing Supply Sufficient? ?107

Chapter 3: Real Estate Price Surge Brings Pain to Everyone

1. From ‘House Poor’ to ‘Yeongkkeul-i’?126

2. Real Estate Deepening Polarization?144

3. Can Taxes Control Housing Prices??156

4. Yeouido and Yongsan Redevelopment, Housing Price Surge Controversy?179

Chapter 4: Government Emergency Measures! But What Are the Results?

1. Real Estate Policies of Past Governments?194

2. Government’s Role in the Real Estate Market?227

3. Moralism and Free Market Economy?249

4. Real Estate, Politics, Elections, and Media?257

Chapter 5: Where Is Korean Real Estate Heading?

1. Real Estate Market Outlook?264

2. Various Attributes of Housing?272

3. Desirable Future of the Housing Market?281

[Appendix] Ten Commandments of Real Estate 306

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Recommendation

Real Estate Market: Don’t Watch the Waves, Watch the Wind!

Moon Joo-hyun _ Chairman of MDM Group, Former Chairman of Korea Real Estate Development Association

It has been 30 years since I entered the real estate market as a developer, putting my name on the line. During this time, I have met many people, from industry professionals to public officials and politicians. Among these numerous connections, Deputy Mayor Jin Hee-seon is one of the few experts with whom I can discuss the major trends in the real estate market. The author’s outstanding insight, stemming from her long administrative experience and broad expertise, commands my humble attention even as someone who has been in the industry for a long time.

Her transition from a 30-year public servant to a professor who lectures and writes based on her administrative experience and knowledge is not unfamiliar to me. I have already encountered her insights on the 30 years of housing price fluctuations and upcoming real estate changes in Korea through several lectures. This book embodies those perspectives.

It must not have been easy for the author, who has worked in public service for over 30 years to stabilize housing supply and the real estate market, to speak about real estate policies and markets. Every carefully presented story contains her thoughts pondered over 30 years. These thoughts go beyond the immediate question of whether to buy a house now and discuss the future direction of Korea’s real estate market. The author says there are lessons from 30 years of real estate changes. One important lesson from market changes is to watch the wind?the cause?rather than the waves?the pattern of change. This book is essential reading for anyone interested in real estate, from urban engineering students to real estate development professionals.

I believe life and business are always a series of challenges. Of course, challenges require thorough preparation based on past experience, relentless effort, and unwavering passion. The lessons and experiences gained in the process must not be wasted. That is the secret to turning crises into opportunities.

Real estate in Korea has become a source of dissatisfaction for all. Through this book, I hope readers can overcome the current crisis and find new opportunities by borrowing Professor Jin Hee-seon’s perspective.

A 30-Year Public Servant’s Real Estate Testament

Kim Kyung-min _ Professor, Graduate School of Environmental Studies, Seoul National University; Ph.D. in Urban Planning and Real Estate, Harvard University

He poses the following question:

“Which region holds the absolutely largest share in Korean real estate?”

As expected, the answer is ‘Seoul.’

Although not all cities in Korea follow Seoul’s price trends, Seoul’s housing prices are undeniably a reference point. The housing prices in the metropolitan area are absolutely influenced by Seoul. The position of Seoul Mayor is an elected office. Therefore, the Deputy Mayor of Seoul is the highest-ranking administrator overseeing the capital. Professor Jin Hee-seon, who served as Deputy Mayor, is an expert who has contemplated and implemented housing policies in Seoul. Hence, her analysis and insights on Seoul’s real estate market are exceptional.

The author begins by recalling the now-forgotten term ‘house poor.’ Though unfamiliar now, just 10 years ago, ‘house poor’?meaning ‘poor despite owning a house’?was a hot issue. Housing prices were stagnant, and money was tied up in the asset of a house, reducing disposable income and limiting other economic activities. Real estate was not an essential commodity but rather a burden. Therefore, while the current issue represented by ‘yeongkkeul’ is important, the author broadens the perspective to examine how real estate was perceived in the past and how price trends evolved. Her analysis of factors driving the real estate market rise, using various data, reflects the experience of a policy designer and executor. Her observations on the impact of low interest rates on liquidity in the real estate market and the fact that apartment supply in Seoul after 2018 was not insufficient, contrary to popular belief, add sharpness to her data-driven reality analysis. The comparison of farmland prices in Hampyeong 40 years ago with Gangnam apartment prices and the discussion of the land public concept originating in the Park Chung-hee era are small but interesting details this book offers.

This book maintains a global perspective. In explaining the need for changes in real estate taxation and various policies, it compares overseas cases to reflect on Korea’s current situation. It kindly explains to general readers why policy innovation is necessary. Chapter 4, which reviews past administrations’ real estate policies, provides a balanced view of Korea’s real estate policy history. It explains why timely policy design and execution are important, the side effects of poorly designed policies, and how leadership in policy execution produces results?demonstrating the sharp insight of a seasoned administrator. At a time when many suffer from soaring real estate prices, this is a point that policymakers and administrators must remember.

Real estate is a cyclical market. It does not move in one direction?there is no eternal upward or downward trend. If prices have risen excessively, the downturn may be severe. Therefore, the final sentence of the book resonates deeply:

“Let us not waste the crisis we face after paying a high price.”

In 2022, there will be presidential and local elections. This is a point that policy executors must keep in mind.

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