The People Power Party criticized the Democratic Party of Korea for saying it would consider abolishing the reconstruction excess profit recapture system (Jae-cho-hwan) and then shifting to a lukewarm stance, saying "public trust is collapsing." Regarding claims raised within the Democratic Party that abolishing Jae-cho-hwan could drive up home prices, it noted this was the kind of idea seen in an "amateur administration."
Kim Do-eup, policy committee chair of the People Power Party, said at the National Assembly on the morning of the 28th at a meeting on preparations for the National Assembly inspection of state affairs, "The Democratic Party said it would consider abolishing Jae-cho-hwan, then within a few days said there was no such discussion," adding, "President Lee Jae-myung and the Democratic Party are failing to share a basic philosophy on real estate policy and are repeating confusion."
He went on, "Some in the Democratic Party are making baseless claims that abolishing Jae-cho-hwan could raise home prices. It is a perception befitting an amateur administration," and added, "With that perception, every real estate policy they roll out fails."
Kim also said, "The reason home prices are rising now is that transactions have stalled and supply has been blocked due to the burden of Jae-cho-hwan," explaining, "When supply is blocked, home prices rise. That is a very simple market principle. The Seoul city government is currently pursuing various incentives to revitalize private redevelopment projects, including raising floor area ratios and rationalizing the public contribution system."
He continued, "President Lee and the Democratic Party should not deceive the public with remarks that stoke anxiety by claiming that abolishing Jae-cho-hwan will raise home prices," stressing, "We propose that the ruling and opposition parties agree to handle the abolition of Jae-cho-hwan in this regular National Assembly session."