Park Sang-woo, Nominee for Minister of Land, Infrastructure and Transport, "Position on Easing Real Estate Regulations... Diversifying Supply Forms"

Diversify Supply Types Focused on Apartments
LH to Become an Institution Fulfilling Its Proper Role

Park Sang-woo, the nominee for Minister of Land, Infrastructure and Transport, announced plans to implement policies easing regulations on the real estate market and expanding housing supply centered on non-apartment types.

[Image source=Yonhap News]

Park emphasized the need to diversify the supply structure, which has been concentrated on apartments, stating, "We need to break away from the long-held apartment-centric mindset."

On the morning of the 5th, while on his way to the office prepared for the confirmation hearing at the Government Complex Gwacheon, Park told reporters, "In my judgment, the real estate market is currently declining significantly, so I will basically approach the market with a stance of regulatory easing."

He added, "However, it is certainly not good for the government to intervene too deeply in the market."

Park is a seasoned bureaucrat with extensive experience in housing policy. He served as Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport during the sharp downturn in the real estate market following the global financial crisis from 2010 to 2012. Later, he was appointed president of the Korea Land and Housing Corporation (LH) during the Park Geun-hye administration and completed a three-year term under the Moon Jae-in government.

Regarding the recent real estate market situation, he diagnosed, "Leading indicators are showing negative signals, and there is considerable concern that a housing supply shortage may occur soon."

He continued, "To overcome these concerns, we will expedite the early start of the 3rd New Town projects and accelerate stalled reconstruction and redevelopment projects by easing regulations. Alongside traditional government-supported methods, we will diversify the forms of supply."

On the supply form measures, he said, "We plan to collaborate with the government and local governments to find ways to quickly supply various types of small-scale housing in urban areas."

He added, "I believe we need to move away from the apartment-centric mindset that has been held for a long time. For the past 30 to 40 years, Korean citizens have commonly felt that owning an apartment is essential, but in reality, a home is simply a place where one can live comfortably."

Park expressed his ambition, saying, "A home is a foundation where a family can live harmoniously within a reasonable spending range based on their income. We will develop various policies to ensure that many such homes are supplied so that everyone can live in sturdy and good houses suited to their circumstances."

Regarding policy priorities, he stated, "From the perspective of people’s livelihoods, the most important thing is to stabilize the real estate market to prevent heartbreaking and frustrating situations caused by real estate issues, whether it be sales prices, jeonse (long-term deposit lease) prices, or jeonse fraud."

On measures to address jeonse fraud, he said, "The basic stance is to approach victims with a warmer heart. I believe there are structural flaws in the market’s transparency and transaction stability that have yet to be guaranteed, so we will carefully examine these issues in the long term."

He also revealed plans to innovate LH so that it can perform its functions properly.

He said, "LH plays a very significant role in stabilizing the housing market, residential welfare, and regional development, but recent reports suggest it is not fulfilling its role. Along with the LH innovation plan to be announced around next week, if I begin my term, I will ensure it becomes an institution that performs its functions."

Park noted, "After leaving the Ministry of Land, Infrastructure and Transport, I have spent 10 years lecturing at schools and gaining diverse experiences in construction sites and the real estate market. I will incorporate these experiences into policy and strive to do well."

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