Chong Won-o, the Democratic Party of Korea candidate for Seoul mayor, was said on the 20th to have said in a closed-door meeting that "if elected, I will not expand the price cap on new apartment sales."
The price cap on new apartment sales is a system that limits the initial sale price of new apartments to no more than a price calculated by adding a reasonable profit to the land acquisition cost and the basic construction cost announced by the government. In Seoul, it currently applies to the three Gangnam districts (Gangnam, Seocho, and Songpa) and Yongsan District.
The Ministry of Land, Infrastructure and Transport said in October last year through its "housing market stabilization measures" that it would keep the areas subject to the private-land price cap as they are. But in the market, there is speculation that the price cap could be expanded.
Chong Won-o held a closed-door meeting on the 19th with executives of a group pushing for the reconstruction of Mok-dong Apartments in Yangcheon District, Seoul. A question was raised there about whether the price cap would be expanded, according to accounts. In response, Chong was quoted as saying, "Expanding the price cap is thinking in the old way," and "there will be no expansion of the price cap (if elected mayor)." However, Chong also reportedly said, "This is not something I can decide on my own." This can be taken to mean that consultations with the Ministry of Land, Infrastructure and Transport, the ministry with jurisdiction, would be necessary.
Chong Won-o also hinted at a partial easing of the land transaction permit system during the closed-door meeting, according to accounts. He was quoted as saying, "It's a problem that people who are not engaging in speculation but actually need to complete a transaction now, people who have reasons they must transact now, are still tied up," and "we are organizing the cases so there are no unfair situations and will work with the government so they can be resolved." However, he also reportedly said, "If the real estate market stabilizes, we should lift it."