[Special Committee on Housing Welfare of the Democratic Party Evaluates One Year of Lee Administration's Real Estate Policies: "Policy Consistency Is Crucial"]

The Special Committee on Housing Welfare of the Democratic Party emphasized on April 23, "For real estate policies to succeed, they must earn the trust of the market. In order to secure market confidence, it is essential to maintain policy consistency and ensure predictability."

Lee Yeonhee, chairperson of the committee and member of the National Assembly, held a forum at the National Assembly Members’ Office Building that day to review and discuss the first year of the Lee Jaemyung administration’s housing and real estate policies and future tasks. She stated, "The greatest enemy of policy is 'frequently changing policies,'" reiterating her point.

Lee Yeonhee, Member of the Democratic Party. Yonhap News Agency

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Assemblywoman Lee said, "The Lee Jaemyung administration will certainly follow through on this," adding, "We will achieve housing stability and expand homeownership opportunities for those without homes and for low- and middle-income citizens through normalization of the real estate market." She further emphasized, "To this end, we will faithfully and swiftly implement the previously announced measures, such as supplying a total of 1.35 million housing units in the Seoul metropolitan area over the next five years, while simultaneously pursuing tax and financial policy measures."

Maeng Sungkyu, chairperson of the National Assembly’s Land, Infrastructure and Transport Committee, evaluated that over the past year, "The government implemented measures to control household loans, such as limiting mortgage loan amounts in the Seoul metropolitan area and banning loans to multiple home owners, and established a plan to supply 60,000 units by utilizing idle urban land, thus laying the foundation for public-led housing supply."

However, Assemblyman Maeng noted, "Recently, the rate of Seoul apartment price increases has hit its highest level in 19 years, and the asset gap between regions has further widened. In addition, supply in the non-apartment sector has sharply dropped, and the number of private housing permits has fallen to less than half compared to the past." He stressed, "Now, housing supply must lead to tangible results that the public can actually feel."

Byun Changheum, former Minister of Land, Infrastructure and Transport and a presenter at the forum, mentioned the need for an 'inclusive housing supply policy,' arguing that the small-scale housing supply structure should be reorganized to match the demand of one- and two-person households, including multi-family and multi-household residences, rental-type officetels, and urban-style housing.

Former Minister Byun emphasized the need for: ▲ the development of mid-rise, high-density Seoul-style housing renewal models; ▲ mixed-use development and youth platform housing supply near subway stations; ▲ complex development linked to relocation complexes in quasi-industrial areas; and ▲ revitalization of urban regeneration innovation districts and residential regeneration innovation districts.

To achieve this, he called for developing housing types suitable for Millennials & Gen Z, legislating an integrated basic law for areas near subway stations to establish comprehensive regulations on station area boundaries, special cases, public contributions, and land acquisition.

He also suggested that, if necessary, the release of quasi-industrial areas should be followed by urban development to promote balanced urban growth. Additionally, he proposed designating innovation districts within urban regeneration activation zones and introducing incentives to improve project profitability.

Lee Gwangsoo, CEO of Gwangsoon Real Estate Agency, who participated as a panelist, noted, "Since February this year, there have been real changes in the market due to the President’s real estate remarks and the end of the capital gains tax grace period for multiple home owners." However, he insisted, "What we need are not one-off measures, but consistent policies."

CEO Lee stressed that real estate policy must be consistent and should provide clear incentives.

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