Unstoppable Won Hee-ryong: "Firm Response to Illegal Activities"

At the Press Conference on the 12th, "No Business Against Interest Rates" Statement
Regarding the Strike, Emphasized Strong Response to "Correct Wrong Practices"

Won Hee-ryong, Minister of Land, Infrastructure and Transport, is answering reporters' questions at the Ministry of Land, Infrastructure and Transport press room in the Sejong Government Complex on the 12th. [Photo by Ministry of Land, Infrastructure and Transport]

[Asia Economy Reporter Cha Wanyong] On the morning of the 12th, the Ministry of Land, Infrastructure and Transport (MOLIT) press room inside the Sejong Government Complex was bustling. Reporters flocked to attend the press briefing hosted by Minister Won Hee-ryong of MOLIT. On one side, there was even talk that this was the largest number of reporters to visit the press room since MOLIT moved to Sejong.

This was interpreted as a sign that market interest in MOLIT policies is high due to various issues such as the real estate market slump and the Cargo Solidarity strike. It was also an opportunity to confirm the soaring popularity of Minister Won. The Q&A-style press briefing was originally scheduled for one hour but went well over time, influenced by Minister Won’s confident and smooth responses that prompted continued questions from reporters.

◆ ‘Housing Price Decline’ from the Mouth of the MOLIT Minister = The most striking statement from Minister Won during the briefing was, “There is no business in front of interest rates. Housing prices will fall at least until the first half of next year.” This was his answer to a reporter’s question about next year’s housing prices. He spoke so firmly that the press room briefly stirred. Moreover, the Korea Research Institute for Housing and Urban Affairs had just released a forecast that nationwide apartment prices would drop by an average of 5% next year, highlighting the seriousness of the real estate market situation for next year.

However, Minister Won clarified that next year’s real estate policy would focus on mitigating market shocks. He especially emphasized flexible responses according to market conditions. Minister Won said, “Housing prices move according to demand and ultimately need liquidity to be supported, but the current conditions are difficult. Instead, since we must avoid crashes or collisions, we will soften excessive or unnecessary shocks to the economy by deploying parachutes or mats.”

He also expressed his intention not to implement policies that go against market conditions and could enable speculative forces to act. Simply put, he said there would be no forced stimulus policies to revive the real estate market.

Minister Won explained, “Looking at the past, the downward cycle lasts about eight years. Since housing prices are created by the market economy and psychology moving together, it is not appropriate to easily use policies that abruptly reverse or stimulate the market.”

Instead, deregulation is expected to continue next year. Minister Won believes that since it is a downturn, it is the right time to lift regulations that were excessively applied during the upturn.

However, he clearly took a reserved stance on lifting additional regulatory zones in the Seoul area. Although the sales performance of Dunchon Jugong (Olympic Park Foreon) in Dunchon-dong, Gangdong-gu, was sluggish contrary to initial expectations, it was not at a level to be concerned about. Minister Won said, “If this situation continues, we will actively consider it, but nothing has been decided or is imminent.”

Instead, Minister Won added, “There are subscription regulations that do not fit current conditions, and we are reviewing parts that break the existing framework such as size or structure.”

Regarding the real estate project financing (PF) market situation, Minister Won said, “I do not think there is an overall financial tightening situation yet. Since the construction sector may be a weak link connecting the real economy and finance, we are monitoring it and have prepared a relief plan depending on the severity.”

Regarding the recent death of the so-called ‘Villa King,’ Minister Won stated, “Whether the family inherits or the family gives up, the court will designate the legal entity corresponding to the inheritance. The problem is that it takes time, but there is no need to worry too much.”

He continued, “Even after the decision on inheritance, if there are deposit damage cases, the Jeonse Damage Support Center, launched last September, will actively respond.”

◆ “No Compromise with Illegal Acts, Will Overhaul the Safe Freight Rate System” = Questions related to the Cargo Solidarity strike were also abundant. Minister Won consistently indicated a tough stance on strong measures. He made it clear that illegal or unfair acts would not be overlooked.

Minister Won announced that the legality of transport companies or truck owners who refused the transport commencement order, as well as threats and violence against truck owners who did not participate in the strike, would be held accountable according to law and principles.

He said, “While the law guarantees the legitimate rights of unions and ensures fair judgment, we will strictly enforce principles without tolerance for illegal acts that lead to anarchy. Even if Cargo Solidarity union members who committed illegal acts and strikes return, there will be no exemption or cancellation of damages or criminal penalties.”

However, since Cargo Solidarity has returned, he expressed willingness to review matters such as a three-year extension of the safe freight rate system through dialogue. He added that they would not be rushed and would conduct thorough discussions with stakeholders and related ministries to come up with a proper plan. Minister Won’s position is to create improvements in a consultative body independent of the National Assembly situation and then pass the bill through the Assembly.

Minister Won said, “Since other political issues like the budget are intertwined, it is possible that it will unintentionally extend beyond the end of the year. Simply extending for three years could lead to the same situation later, so passing it as is would be irresponsible.”

Additionally, Minister Won shared his opinion on the deregulation of the Serious Accident Punishment Act, which has been in effect since this year. He pointed out, “Currently, if a problem occurs at one construction site, the CEO of the corporation conducting hundreds of construction sites nationwide is held responsible. The larger the scale, the more likely this is, leading to loopholes such as appointing a separate Chief Safety Officer (CSO).”

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