Won Hee-ryong: "Demand Promotion and Tax Reform Contents Excluded from Supply Measures"

Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated on the 11th that the housing supply measures to be announced at the end of this month will "in principle exclude any content that stimulates specific demand or grants special favors."

Minister of Land, Infrastructure and Transport Won Hee-ryong is giving a greeting at the National Symbolic Space Creation Business Agreement Ceremony held at the National Architecture Policy Committee in Jongno-gu, Seoul, on the afternoon of the 11th. / Photo by Yonhap News

Minister Won said in an interview with reporters immediately after the signing ceremony for the creation of a national symbolic space held at the National Architecture Policy Committee in Jongno-gu, Seoul, in the afternoon, "Demand is currently very volatile. Rather, the measures will include content that opens up the supply bottleneck to enable overall circulation."

He added, "We are looking at parts where costs have risen and profitability has deteriorated, parts where procedures are not progressing quickly due to local governments or institutional constraints, and parts where progress is stalled because financial thresholds cannot be overcome."

He expressed the view that the timing for reversing the tightening trend is considered in three- to six-month units. In other words, the goal is to resolve all the currently rigid parts by looking at December this year and March next year.

He emphasized that issues requiring legal amendments, such as capital gains tax exemptions, are not being considered in this measure.

Minister Won said, "Touching taxes requires changing the law, which takes time and has too many side effects. This time, we will focus thoroughly on the supply side."

This was to draw a line regarding the expectation that the supply measures might include exemptions from acquisition tax and capital gains tax on unsold apartments in eup and myeon areas, as well as the abolition of capital gains tax surcharges.

Regarding the easing of regulations on officetels and urban-type residential housing raised by some, he said, "I do not think supply is lacking due to insufficient demand," and added, "If demand-side restrictions are loosened, speculative demand may flood in and worsen the market."

The government plans to announce the supply measures before the Chuseok holiday. These are expected to include plans to extend the maturity of real estate project financing (PF) and expand construction finance and guarantee support. It is also expected to include content to advance public orders and relax regulations so that permits and construction start can proceed quickly.

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