Seongnam City Requests Lifting of Regulatory Status for Sujeong-gu and Jungwon-gu from MOLIT..."Statistical Criteria Error"

Excessive Regulations Increase Inconvenience for Citizens
Need for Rational Adjustment

Seongnam City in Gyeonggi Province (Mayor Shin Sangjin) announced on December 5 that it has officially requested the Ministry of Land, Infrastructure and Transport to lift the regulatory status of Sujeong-gu and Jungwon-gu, which were collectively designated as regulated areas, speculative zones, and land transaction permission zones on October 16 in accordance with the Ministry's recently announced 'Housing Market Stabilization Measures.'

Seongnam City Hall exterior. Provided by Seongnam City

This request stems from the fact that the statistics used for the designation-such as housing prices and consumer price inflation rates-were based on the period from June to August 2025, rather than the three months immediately preceding the designation (July to September 2025). If the July to September data are used, the areas in question do not meet the requirements for regulatory designation.

An area is designated as a regulated zone if the housing price increase rate over the three months prior to designation exceeds 1.3 times the consumer price inflation rate. A speculative zone is typically designated if the housing price increase rate is significantly higher than the inflation rate, usually exceeding about 1.5 times the consumer price inflation rate.

According to an analysis by the Seongnam Policy Research Institute, if the July to September 2025 statistics are applied and the designation criteria are set at 1.3 times the consumer price inflation rate for regulated zones and 1.5 times for speculative zones,

Sujeong-gu only meets the requirements for regulated zone designation and does not qualify as a speculative zone, while Jungwon-gu does not meet the requirements for either designation.

The city emphasized the need for rational regulatory adjustments, citing increased inconvenience for citizens due to the restrictions on housing transactions and loans, as well as the growing burden on the local economy resulting from the regulatory designation.

Seongnam City also requested the lifting of the land transaction permission zone designation, which was imposed due to concerns over speculation.

Mayor Shin Sangjin stated, "We have formally requested the Ministry of Land, Infrastructure and Transport to lift the regulatory status of Sujeong-gu and Jungwon-gu in order to ease the burden on citizens and restore normalcy to the housing market," adding, "We will continue our administrative efforts to minimize the burden on citizens and normalize the local economy."

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