The Won Hee-ryong Administration Finds Direction... "The Biggest Challenge Is Speed Control"

Focus on Deregulation and Supply Expansion... Side Effects Include Housing Price Surge in Some Areas
Experts Say "Immediate Measures by Moon Government Caused Problems"... Calls for Balanced Approach

[Asia Economy Reporters Dongpyo Kim and Taemin Ryu] The launch of the ‘Won Hee-ryong administration Ministry of Land, Infrastructure and Transport,’ entrusted by President Yoon Seok-yeol with the special mission of ‘housing stability,’ has entered its final countdown. Although it is spearheading deregulation and supply expansion as twin pillars, these expectations have also caused side effects, stirring up housing prices in some areas. Attention is focused on how Minister-designate Won Hee-ryong, entrusted with this heavy responsibility in a challenging environment, will solve the highly complex housing price equation.

Minister-designate Won is expected to focus first on easing various regulations and tax burdens promised by President Yoon, as well as on housing supply to stabilize housing prices. He diagnoses that the overlapping regulations and tax burdens imposed by the previous administration were not stabilizing housing prices but rather the main cause of their surge. At the parliamentary confirmation hearing on the 2nd, he stated, "The Moon Jae-in administration’s real estate policy fought against the market and criminalized the very ordinary desires of the people and the middle class, resulting in the worst failure." He intends not to repeat the previous administration’s mistake of overusing the regulation card to criminalize desire and punish it. Instead, he repeatedly reaffirmed a proactive policy of deregulation.

It is expected that regulations on redevelopment and reconstruction maintenance projects, which have blocked urban supply, will be eased, and market functions will be restored through the activation of private rentals. Policies related to maintenance projects such as the price ceiling on pre-sale, reconstruction charges, and safety inspections will also be adjusted to promote urban supply. Significant revisions to the Three Lease Laws (right to request contract renewal, rent ceiling, and lease reporting system) are anticipated. Minister-designate Won said, "I believe fundamental improvements close to abolition are necessary."

A roadmap for supplying 2.5 million housing units, a pledge of President Yoon, is also expected to be concretized soon. In his confirmation hearing response materials, Won stated, "I will present a predictable and reliable housing supply roadmap as soon as possible." There is also a goal to establish a ‘First New Town Special Act’ to lay the foundation for supplying more than 100,000 quality housing units in the metropolitan area adjacent to Seoul, such as Bundang, Ilsan, and Pyeongchon in Gyeonggi Province.

Experts express agreement with this policy direction but unanimously emphasize the importance of ‘policy pacing’ and ‘speed control.’ Joo-hyun Cho, professor of real estate at Konkuk University, said, "We must remember that the Moon Jae-in administration caused problems by taking immediate measures based on short-term indicators," adding, "In a market full of uncertainties, sudden multiple reforms could further increase market instability." He stressed the need to proceed cautiously and gradually without losing policy consistency and transparency. Seung-hyun Song, CEO of Urban and Economy, also said, "The previous administration issued more than 20 real estate measures, but each time, only side effects appeared consecutively," emphasizing, "Learning from this, it is important not to try to suppress the market but to accompany it while adjusting the speed and pacing of policies."

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