Won Hee-ryong: "No Abolition of Reconstruction Charges... Certain Level of Public Recovery Inevitable"

"Significant Tax Reduction Needed for Long-Term Single Homeowners"
"Deregulating Areas Is Not Intended to Cause House Price Drops or Increases"

As the government announced plans to reform reconstruction-related systems in September, Land, Infrastructure and Transport Minister Won Hee-ryong stated on the 22nd that "a certain level of recovery and public contribution is inevitable."

Minister Won, during a meeting with reporters at the Government Complex Sejong, responded to questions about easing reconstruction charges by saying, "While the interests of landowners and building owners must be protected, the general public will not agree to the complete abolition of the reconstruction surplus profit tax (재초환)." He added that the reconstruction reform plan is scheduled to be announced next week.

Regarding the reconstruction charge reform, Minister Won said all possibilities are open except for abolition. He emphasized, "The main principle of the reform is that recovery should be done at an appropriate level." However, he noted, "Since reconstruction regulations are uniformly applied, there are cases where reconstruction projects in local areas cannot proceed, and in such cases, regulations should be eased to allow project progress."

He also hinted at exemptions for single-home real demand owners. Minister Won said, "For those who own one home and have lived in it for a long time, there is a need to significantly reduce the reconstruction charges."

Furthermore, he added, "Regarding donation or public contribution, the basic principle is to apply reasonable standards, as the state currently applies unfair criteria by not excluding these from excess profits."

He said, "Issues such as when to calculate the excess profit from reconstruction and how to set progressive brackets require simulation," and added, "Regarding concerns about the reconstruction surplus profit tax, we are open to all options except abolition."

Regarding the Ministry of Land, Infrastructure and Transport's decision the previous day to lift regulation zones across local areas except Sejong, Minister Won emphasized, "The purpose of lifting regulation zones was not directly aimed at supporting housing prices or increasing housing transactions."

He reaffirmed the government's stance against artificial economic stimulus through real estate policies, saying, "We cannot artificially induce transactions by encouraging multi-homeowners to take out loans to buy houses."

On the real estate market outlook, he predicted strong downward pressure for the time being due to interest rate hikes and other factors. Minister Won said, "Due to liquidity tightening, not only mortgage loans and credit loans but also project financing (PF) and other business funds will be affected, so downward or tightening factors will inevitably operate in the real estate sales and supply markets until next year."

Regarding the Ministry of Land, Infrastructure and Transport's initiation of an audit on Korea Expressway Corporation the previous day, Minister Won said, "A task force (TF) involving private members was disbanded after issues arose about attitudes that prevented further discussion. I ordered the TF's dissolution. Since innovation was not progressing through discussion, we had no choice but to exercise supervisory authority. The same standards will apply to other affiliated organizations."

On the early opening of the metropolitan area express railroad (GTX), Minister Won said, "We plan to open it early sequentially, not by rushing construction. We are looking for factors that can shorten the construction period even by a month," adding, "Our will and effort will be 'super level.'"

Minister Won also announced plans to unveil measures to resolve the late-night taxi shortage in early next month. He said, "We will break the structure where only fares increase while passengers continue to suffer," adding, "An increase in the call fee (fare) comes with the premise that taxis must be available at the times customers want, and the increased call fee should be used to improve drivers' treatment."

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