The number of unsold dwellings after completion, referred to as malignant unsold dwellings, has been confirmed to be 21,480 units. 80% of malignant unsold dwellings were concentrated in non-capital areas.
According to the 'status of unsold dwellings by city and province' requested by National Assembly member Kang Min-guk of the People Power Party (National Assembly's Political Affairs Committee) from the Ministry of Land, Infrastructure and Transport on the 18th, the total number of unsold dwellings after completion nationwide was recorded at 21,480 units.
Of this, 4,251 units (19.7%) were in the capital area, while 17,229 units (80.2%) were in non-capital areas. This means that 8 out of 10 unsold dwellings nationwide are in non-capital areas.
During a plenary meeting of the Financial Services Commission's report to the Political Affairs Committee, Kang noted to the chairperson of the Financial Services Commission about the explosive issue of unsold dwellings in non-capital areas, stating, "The problem of unsold dwellings in non-capital areas is not simply a matter of oversupply, but rather a complex issue intertwined with financial regulations and demand contraction," and raised the necessity for a temporary relaxation of the stress Debt Service Ratio (DSR) regulations.
Kang said, "Given that the construction and housing market in non-capital areas are in such a situation, if the financial authorities are passive in temporarily deferring the stress DSR regulations, it amounts to dereliction of duty," and demanded an active review of the temporary relaxation of DSR regulations for unsold dwellings after completion in non-capital areas. Kang also asked, "When do you plan to review the different application ratios and timing between the capital and local areas during the implementation of the three-stage stress DSR?" reiterating the urgency of the review.
Kang added, "It is fundamentally necessary to clearly distinguish policies between the capital and non-capital areas, especially in the current situation where population decline is accelerating and the regional economy is stagnating. Applying the same financial regulations nationwide will ultimately lead to regional extinction, so I hope that the financial authorities will consider regional criteria when formulating future financial policies."