Jin Sung-joon, the chair of the Democratic Party of Korea's Policy Committee, emphasized the need to expand supply for stabilizing the real estate market, saying, "Public redevelopment projects must be expedited." He particularly noted, "Tax measures should be considered as a last resort," showing a cautious stance on the possibility of tax reform at this stage.
During a CBS radio interview on that morning, the chair pointed out, "During the Moon Jae-in administration, we started construction on 35,000 apartments a year, but under the Yoon Suk-yeol administration, the supply has been reduced to about 20,000 a year," adding that "a supply shortage may emerge starting from 2025 to 2026."
He added, "We need to present supply measures," stating that existing public redevelopment projects, such as the 3rd new town project, should be thoroughly examined and promptly pushed forward.
Regarding the high housing demand in urban areas like Seoul, he stated, "It is challenging to create large-scale residential sites in Seoul, so urban complex development, redevelopment, and reconstruction must be promoted with urgency," while adding, "It is difficult for the private sector to come together voluntarily, which prolongs the process, leads to legal disputes, and sometimes results in cancellation." He continued, "Therefore, if the public steps in and the government takes the lead, the speed will increase," emphasizing the need to actively promote measures to revitalize public redevelopment.
He expressed the position that the system regarding the recovery of excess profits from private redevelopment and reconstruction projects should be maintained. Jin stated, "We need to manage and supervise the development projects led by private entities so that profits are not monopolized by a few," adding, "Such mechanisms should fundamentally be maintained." He further noted, "However, it is essential to strive to expedite administrative procedures as much as possible."
Regarding the recent government decision to tighten loan regulations, limiting housing mortgage loans to a maximum of 600 million won when purchasing dwellings in regulated areas, he suggested it would be better to maintain the current policy for the time being.
He stated, "If actual buyers are facing significant difficulties, it would be challenging to continue the loan regulations, but as of now, the effects of the regulations are not likely to disappear easily."
In terms of taxation, he fundamentally left the possibility of reform open. Jin remarked, "The real estate market situation is serious, and if we face situations where tax measures (such as property tax and transaction tax) must follow, is there any reason not to implement them?" He also commented on remarks made by Lee Jae-myung, the president, during his presidential campaign stating, "I will not control house prices with taxes," saying, "It's not something that should be interpreted dogmatically."
However, he noted, "Taking tax measures directly imposes an economic burden on the public, so we must be cautious; it should be considered a last resort and not something to be forced upon them." He suggested that financial measures, supply measures, and administrative tools should be prioritized for stabilizing the real estate market, while tax measures could be considered later.
Meanwhile, regarding the debt adjustment for long-term delinquents included in the second supplementary budget proposal, he commented on the criticisms regarding whether to include foreigners by saying, "It appears that foreigners may be included because we are looking at those who have been in arrears for more than 7 years and owe less than 50 million won.", adding, "Since those individuals came to our country intending to take out loans and live here, there may be humanitarian grounds to consider it. However, we also need to think about public sentiment, so we must examine what is best."
He further emphasized, "Those who have not been able to repay debts for over 7 years are credit delinquents, and since the state is responsible for them, this becomes a burden on welfare. Therefore, adjusting their debt to enable them to restart is a good thing for the state and society."