Kim Yong-beom, the Cheong Wa Dae policy chief, on the 24th said regarding the second year-in-office real estate supply plan that "we have to just build (dwellings) no matter what," adding, "we need to discuss extraordinary measures." He also said he is willing to hold a "public debate" on real estate taxation with market participants who have interests at stake, including homeowners, tenants, end users, and members of so-called "mom cafes." In connection with this, the government is preparing a town hall meeting in mid-next month with related ministries, experts, and the general public participating.
Deputy Minister Kim attended a Kwanhun forum held at the Korea Press Center that day and said, "The dwellings issue is the most difficult issue for me as well, so the central government and the Seoul city government need to put their heads together."
Kim said, "People say even greenbelt areas are off-limits, and that building dwellings in industrial zones like Yeongdeungpo is not acceptable because Seoul needs to maintain its manufacturing base. Those are all arguments that can be made," but added, "If everyone opposes everything like that, where are young people supposed to live?" He went on to say that discussion is needed to coordinate interests, adding, "There are many closed schools, and we are trying to search exhaustively through public-sector land to find places where we can build dwellings."
He also brought up "tax reform," including holding taxes. Deputy Minister Kim said, "Real estate accounts for the largest share of people's assets, and taxes are also an important topic," adding, "we are running hundreds of simulations (for tax system reform)." In particular, he said, "Macroeconomically, we are in a very difficult phase, and from the perspective of stable management, taxes are important," adding, "we plan to hear truly diverse opinions, including from those with direct interests and mom cafe members. If necessary, we will go through a public debate and make careful policy decisions."
◇"Do home prices rise only under progressive governments? A very lazy observation"
On the conventional wisdom that "home prices rise only when a progressive government is in power," he said it is "a very lazy observation." During the Roh Moo-hyun administration, dwelling supply was blocked for several years due to the aftereffects of the 1997 foreign exchange crisis, and as demand exploded during the 2002–2004 boom, home prices rose sharply, which he analyzed as "a phase similar to now." He also said that during the Moon Jae-in administration, even though annual dwelling supply was the highest, home prices rose as liquidity surged due to the COVID-19 pandemic, adding, "dividing it simply into progressive and conservative governments is far too facile an observation."
The government is also reviewing measures such as strengthening holding taxes and cutting transaction taxes, given that immediate supply in the greater Seoul area is difficult. Deputy Minister Kim said, "We are studying reasonable measures in light of housing market stability and tax fairness," adding, "adjustments to a convincing level are necessary." He added, however, "We do not intend to control real estate through taxation alone," and said, "for real estate taxation, we will mobilize all administrative capacity and listen to a range of opinions."