Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport said on the 11th that the domestic dwellings market could become similar to Japan's "lost 30 years."
That day, the Minister said during an interpellation session at the National Assembly, "I think there is a possibility that (Japan's lost 30 years and the domestic dwellings market) could move somewhat similarly."
On July 7, President Lee Jae-myung also said at a national town hall on real estate policy, "(Japanese real estate) kept rising in price and eventually reached a certain limit and burst like a so-called balloon."
In response, People Power Party lawmaker Park Su-min said Korea is on a trend of rising national income and has different conditions from Japan, and that it is necessary to expand real estate supply.
The Minister said, "I do not want to unconditionally criticize the previous administration," but added, "The cause of home price increases is not something that can be solved by building today or tomorrow; it must be prepared for years in advance." The Minister continued, "We must objectively see that during three to four years of the previous administration, dwellings supply was nearly at a cliff, which is acting as today's supply shortage and psychological anxiety."
On private-sector supply, the Minister said, "Because private-sector supply is greatly affected by project financing (PF), raw material prices, and the like, there is a possibility that actual supply will be insufficient." The Minister added, "During the Yoon Suk-yeol administration, supply failed as such problems intensified." The Minister said, "Our government's precise principle is to supplement the private sector's weaknesses and, on the other hand, to (support) by shortening permits and approvals (in the public sector)."