Ruling Party Requests Temporary DSR Easing for Non-Capital Region Unsold Homes... Calls for Measures Beyond Drastic

"Call for Temporary Easing of DSR...
Financial Services Commission Promises Review"

The People Power Party has requested the government to temporarily ease the Debt Service Ratio (DSR) to resolve unsold housing units outside the metropolitan area.

On the 4th, Kim Sang-hoon, the Policy Committee Chair of the People Power Party, stated in a briefing after the 'Economic Sector Livelihood Measures Review Party-Government Meeting' that "to resolve unsold housing units outside the metropolitan area, we urged relevant ministries to temporarily ease the DSR, and the Financial Services Commission promised to conduct a thorough review."

On this day, the party and government reviewed the housing market and construction industry situation outside the metropolitan area and discussed measures to resolve unsold units. They shared the understanding that the backlog of unsold units outside the metropolitan area is restricting the liquidity of construction companies and shrinking investment, leading to a downturn in the construction industry. Chair Kim said, "If the current situation continues, it will negatively impact economic growth and exacerbate regional polarization, so we agreed to actively cooperate to resolve unsold housing units outside the metropolitan area."

Kwon Seong-dong, floor leader of the People Power Party, is speaking at the party-government consultation meeting on economic livelihood measures held at the National Assembly on the 4th. Photo by Kim Hyun-min

Sharing the awareness of the problem of unsold units outside the metropolitan area, he emphasized that a shock treatment beyond radical measures is necessary. Kwon Seong-dong, the floor leader of the People Power Party, said, "The government may have various concerns, but all economic and social statistics, including birth rates, are at a completely different level compared to 10 or 20 years ago," adding, "Now is the time to put all measures on the table, including radical deregulation, and actively respond to the local unsold housing crisis."

To this end, the party and government plan to steadily implement customized support measures for resolving unsold housing outside the metropolitan area starting this year, such as maintaining the one-household-one-home tax exception when purchasing unsold homes after completion and a 50% reduction in the original acquisition tax for developers. They will also push for the prompt enactment of follow-up legislative amendments to support resolving local unsold housing, including revisions to the Enforcement Decrees of the 'Private Rental Housing Act,' 'Local Tax Act,' and 'Property Tax Act,' while supporting the launch of a non-metropolitan unsold housing purchase real estate investment trust (CR REIT) within the first half of the year to directly resolve the backlog of unsold units.

Meanwhile, when asked whether they are considering the swift execution of the supplementary budget, Chair Kim responded, "We will keep the possibility of a supplementary budget open and engage in dialogue," but added, "If the negotiations on the exemption from the 52-hour workweek under the Semiconductor Special Act and the operation of the pension special committee are smoothly concluded, the supplementary budget can also be discussed together."

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