The People Power Party noted on the 11th, "It is time to boldly ease the total debt principal and interest repayment ratio (DRS) loan regulations to resolve the unsold property crisis outside the metropolitan area."
Kim Sang-hoon, the policy committee chair of the People Power Party, said at a National Assembly strategy meeting that morning, "Given the serious situation in the construction industry, it is not a time for the government to be overly cautious."
Kim, the policy committee chair, pointed out, "The recent situation in the construction industry is truly alarming, as the construction sector accounts for 15% of the gross domestic product (GDP), and construction companies are facing mass bankruptcies with a rapid increase in the number of legal management applications."
He added, "Jobs in the construction sector are also declining sharply. In January of this year, employment in construction dropped by 169,000, the largest decrease since 2013. Consequently, 61,000 youth jobs disappeared. The number of mid-sized construction companies that have applied for legal management has reached six, including Samjin, Daeko Construction, Angang Construction, and others."
He commented, "Given the serious situation of the construction industry, I feel that the government measures are merely superficial and reactive, pointing out that while there are support measures such as the Korea Land and Housing Corporation (LH) directly purchasing properties at prices below the sale price, allowing 'purchase-type registered rental' for unsold apartments after completion in the provinces, and the launch of CR REITs in the first half of the year, there are ongoing criticisms that these lack practical viability in the field."
Additionally, Kim expressed concerns, stating, "Excessive regulations are stifling economic growth," mentioning ▲ the 52-hour workweek regulation and semiconductor special laws ▲ amendments to commercial laws that hinder corporate activities ▲ excessive reconstruction and redevelopment regulations ▲ and the push for laws to formalize interest rate calculations.
He emphasized, "I believe the era of driving the national economy through fiscal expenditures has come to an end," adding, "It is the role of the political sphere and the government to pave the way for private corporations to innovate technology and grow on their own."