Jae-yeon Kim, Progressive Party Presidential Candidate, Pledges "200-Square-Meter Apartments Supplied at 100 Million Won... 100,000 Units Annually"

10 Major Promises to Dismantle the 'Real Estate Speculation Republic'
Land Public Concept, Construction Cost Apartments, and Other Pledges

[Asia Economy Reporter Oh Ju-yeon] Progressive Party presidential candidate Kim Jae-yeon announced on the 16th a set of 10 major real estate pledges, stating, "We will resolve the housing insecurity of non-homeowners, low-income citizens, and young newlyweds by supplying 100,000 units annually of 20-pyeong (approximately 66.1㎡) 'construction cost apartments' priced in the 100 million KRW range."

On that day, at a press conference held in front of the National Assembly in the morning, Candidate Kim said, "The state and local governments can no longer solve real estate problems through collusion with construction capital, and a major shift in housing supply policy is necessary," proposing the 'construction cost apartment.'

Construction cost apartments involve the public owning the land and only selling the buildings. Candidate Kim stated, "As of last September, the basic construction cost was 6.879 million KRW per pyeong (3.3㎡)," adding, "Using land lease and repurchase condition methods, 30-pyeong units can be supplied nationwide in the 200 million KRW range, and 20-pyeong units in the 100 million KRW range."

Regarding the land lease housing supply method, he explained, "Singapore implemented this method to enable 80% of its citizens to own homes and achieve housing stability," and added, "The land is excluded from sale, and only the ownership of the building is recognized for residents. There was even a case where units were supplied at 5.5 million KRW per pyeong in Gangnam and Seocho districts of Seoul."

He further stated, "If the building purchased is sold, the state repurchases it to recover unearned income and then supplies it again at a low price to non-homeowners, contributing to the improvement of housing standards."

Candidate Kim said, "Among the housing supply plans announced by the current government, converting public sale housing, private sale housing sites, and public-supported private rental housing sites with secured land can enable an annual supply of 100,000 units."

Regarding funding methods, he elaborated, "Since only the building is sold, construction costs can be secured through consumer sales payments. We will completely halt urban regeneration New Deal projects that stimulate speculation and housing price increases in city centers and reallocate the budget. Utilizing public funds such as the National Pension Fund, the best approach is for pension funds to purchase at construction cost levels and develop 100% publicly."

Candidate Kim emphasized, "By combining the land policy of expanding public ownership of land under the concept of land publicness with the policy of 'construction cost apartments' that sell only affordable and high-quality buildings, we can dismantle the real estate speculation republic through resolving asset inequality and stabilizing housing."

In addition, Candidate Kim proposed the following 10 measures to dismantle the real estate speculation republic: ▲Revival of the three land publicness laws including the land ownership cap system, land value increment tax, and development profit recovery system ▲Prohibition of owning more than three houses per household ▲10,000 KRW monthly rent cap for youth ▲Mandatory 20% public rental housing by region ▲Introduction of free housing for low-income groups ▲Lifetime contract renewal rights and fair rent system ▲Real estate blind trust system for public officials ▲Ban on farmland ownership by non-farmers ▲Effective real estate holding tax rate of 1%.

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