Democrats Unusually 'Welcome' Yoon Administration's Policy to Purchase Unsold Housing

Special Committee on Livelihood Economy and Special Committee on Housing Welfare Press Conference
"Take this as an opportunity to strengthen public rental housing policy"
"However, it should be expanded up to 50%"

[Asia Economy Reporter Naju-seok] The Democratic Party of Korea has welcomed the government's policy to purchase unsold housing units. Since President Yoon Suk-yeol took office last year, it is unusual for the opposition party to hold a press conference supporting the government's policy in a National Assembly where the opposition holds the majority. The Democratic Party demanded that the policy should purchase units at a discount of up to 50% to prevent moral hazard among construction companies, and that the policy should shift towards housing welfare through public rental housing.

On the 18th, the Democratic Party's Special Committee on Livelihood Economy and the Special Committee on Housing Welfare held a press conference regarding the government's plan to purchase unsold housing units and utilize them as public rental housing. They stated, "This is an effective measure as it can shorten procedures such as site selection, land acquisition, and construction, allowing for stable and rapid supply of public rental housing." Representative Lee Yong-woo, a member of the Livelihood Economy Special Committee, also told reporters, "Purchasing unsold housing units to convert them into public rental housing is a very good policy."

However, regarding the unsold housing policy, they insisted, "The purchase price should be expanded to up to 50% of the sale price." They criticized the recent purchase by LH of 36 apartment units at once for public rental use, saying, "The government has been suspected of protecting the interests of specific construction companies," and pointed out, "Although the government claims to have purchased them at a 15% discount, these units were already sold with a 15% discount applied." They warned, "If the government and public enterprises bear the full responsibility of construction companies, it will encourage moral hazard among construction companies at the expense of taxpayers' money."

Kim Tae-nyeon, Chairman of the Democratic Party of Korea's Committee on Livelihood Economy Crisis Measures, and committee members held a press conference on the 18th at the National Assembly to announce their position on the government's policy to purchase unsold housing units. Photo by Yoon Dong-joo doso7@

Kim Tae-nyeon, chairman of the Livelihood Economy Special Committee and a Democratic Party lawmaker, advocated purchasing below cost price. Regarding this, Representative Lee and others said, "The reason cost price was not mentioned at the press conference is due to controversies surrounding the cost price," and added, "If there is a market price, an appropriate discount rate can be determined."

They also presented the principle that the target housing units for purchase should be "in areas with demand." The special committee members emphasized, "If the government focuses only on 'resolving unsold inventory,' the purchased unsold units will remain vacant, and areas with housing demand will suffer from a 'demand-supply mismatch' due to insufficient supply." They stressed, "The government must keep in mind that the goal of purchasing unsold housing units is not to 'absorb market shocks' but to 'stabilize housing for ordinary citizens,' and should carefully select and purchase units in areas with housing demand."

Regarding this, the special committee members pointed out, "Budgets related to the purchase of unsold housing units must be established," and said, "If the government plans to purchase unsold housing units, it must present a new proposal on how much budget will be required. Otherwise, it will be nothing more than a showy lip service."

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