Hong Nam-ki: "Housing supply under Moon administration exceeds past levels... Tax strengthening is a market stabilization measure"

Last Real Estate Market Review Meeting of the Moon Government Held
"We Apologize Once Again for Failing to Stabilize the Real Estate Market"

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is presiding over the 41st Real Estate Market Inspection Meeting of Related Ministers held at the Government Seoul Office in Jongno-gu, Seoul on the 13th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Sejong=Reporter Kwon Haeyoung] Hong Namgi, Deputy Prime Minister and Minister of Economy and Finance, expressed on the 13th his regret over the Moon Jae-in administration's real estate policies over the past five years, stating, "I sincerely apologize once again for not being able to connect these policies to the stabilization of the real estate market."

At the 41st Real Estate Market Inspection Meeting of related ministers, held at the Government Seoul Office on the same day, Deputy Prime Minister Hong said, "We have consistently pursued real estate policies under the three main principles of expanding supply, protecting actual demand, and suppressing speculation."

He emphasized that the current government has never neglected housing supply. He stated, "Looking at the overall housing supply over the past five years, the number of housing completions and the designation of public housing sites averaged 523,000 units and 73,000 units per year respectively, both higher compared to the past," adding, "Some even view that the housing supply after 2025 will exceed market expectations solely based on the current government's measures."

He continued, "Especially for low-income and actual demanders, the government has mobilized all possible capacities in finance, taxation, and subscription systems to support home ownership and strengthen housing stability." He explained that through the supply of public rental housing, the government achieved the OECD average stock rate (8%, 1.77 million units in 2021) and enhanced the public's perception of housing welfare.

Regarding the punitive strengthening of real estate taxation sustained over the five years of the Moon administration, he explained it was a tax system established for market stabilization. He said, "It is important to allocate the limited resource of housing to those who need it most, recognizing that a house is a place to live, not just something to buy." He added, "From this perspective, we established and implemented tax measures for market stabilization at every stage of housing transactions." Concerning the increased capital gains tax, he mentioned, "The next government will seek new judgments under a new policy direction."

Regarding the three lease laws, Deputy Prime Minister Hong stated, "Although there were positive effects, some issues such as instability in new jeonse (long-term lease) prices were raised, and we made policy efforts to supplement these." He expressed hope that "the next government will further improve and stabilize the system."

On the recent real estate market, he diagnosed, "While maintaining a broad downward stabilization trend, the extent and speed of the decline have slowed, and due to regulatory easing and development expectations, some areas such as the Gangnam 4 districts have shifted to an upward trend," emphasizing, "Absolute market stability is important."

Finally, Deputy Prime Minister Hong stressed, "Efforts to stabilize citizens' housing are a top priority public issue with no endpoint." He added, "In this regard, it is absolutely important to maintain and expand the recently hard-won downward stabilization trend in the real estate market. We will do our utmost until the very last moment to ensure that the next government can seek necessary institutional changes based on a stable real estate market."

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