Kim Yoon-deok, the nominee for the Ministry of Land, Infrastructure and Transport, stated that the real estate measures announced on June 27 were effective in stabilizing the housing market, and he would announce housing supply measures in the near future. The plan to expedite the supply of new towns and utilize idle lands for various types of public dwellings, such as equity accumulation and profit-sharing housing, is expected to be included in the follow-up real estate measures.
During the personnel hearing held at the National Assembly in Yeouido, Seoul, on the 29th, Kim noted, "Since the lending regulations on June 27, the overheated real estate market in Seoul and the metropolitan area has been stabilizing to some extent," but he added, "However, I strongly agree with the opinion that ultimately housing supply must follow in order for the market to stabilize."
He further emphasized, "It is important to restore public trust with a clear roadmap and concrete plans regarding housing supply," adding, "Once appointed, I will prioritize responsibly presenting the government's supply policy on dwellings."
◇Utilization of new idle land... Supply of various public dwellings such as equity accumulation types
Kim announced his plan to utilize idle land and aging public facilities in urban areas to expand housing supply. Instead of using the existing urban idle lands promoted during the Moon Jae-in administration, such as Taereung Country Club and the area around the Government Complex Gwacheon and the National Diplomatic Academy, Kim's idea is to find new land.
Kim stated, "I am focusing on finding new idle land," adding, "Utilizing idle land is not an easy issue. I understand that progress has been stalled due to residents' opposition or disagreements with local governments." He further pointed out, "However, has a past Minister ever visited (the idle land with) disagreements and negotiated directly with residents?" He asserted, "For supply in the metropolitan area to be properly carried out, policies must not only end as policies but must operate through proactive administration and on-site governance."
Kim also indicated plans to accelerate the schedule for the supply of new third-generation towns so that the public can tangibly feel the expansion of housing supply. He remarked, "Looking at the reasons for the delays in the development of the third-generation new towns, they are primarily cited as compensation and relocation issues, and cultural heritage investigation problems," adding, "If I am appointed as Minister, I will soon announce housing supply policies that include solutions."
The type of dwellings that the Ministry of Land, Infrastructure and Transport will primarily supply is expected to focus on public housing. Kim remarked, "It would be good if the supply of dwellings heads in a direction that strengthens its public characteristics," indicating plans to develop various forms of public housing, including equity accumulation types and profit-sharing types, which are known as savings dwellings.
Kim expressed his intention to activate maintenance projects that can expand housing supply in urban areas, stating, "There are various ways to revitalize it, such as simplifying the redevelopment and reconstruction stages or adjusting the floor area ratio." However, regarding the redevelopment profit recovery system, which is an obstacle to activating maintenance projects, he mentioned, "In fact, it is a system that has never been implemented," adding, "We can proceed and evaluate it for now."
◇Kim: "Special measures for unsold dwellings in regions"
Kim also indicated that special measures will be taken regarding the unsold housing issue to revitalize the regional housing market. He said, "The unsold housing problem requires various forms of support, including financial input," adding, "If we continue as we are now, the issue of unsold dwellings in the regions will likely remain a continuous deadlock. A special measure is necessary." He further noted, regarding the slow progress of the Korea Land and Housing Corporation's acquisition of unsold dwellings in the regions, "We need to consider (price realism)."
Moreover, he stated the need to improve the application of uniform regulations for housing in the metropolitan area and regions. Kim pointed out, "It is necessary to considerably improve the issue of applying the same standards uniformly in terms of tax and various regulatory aspects between the metropolitan area and the regions."
He continued, "I think a comprehensive review of the preliminary feasibility study system is also necessary," adding, "If we do not create a system where the cost-benefit (BC) analysis, which simply assesses economic viability, is applied differently between the metropolitan area and the regions, the degree of difficulty in the regions will not only increase but could also lead to extinction," asserting, "I will recognize this as a matter of survival and make efforts."
◇Controversy over 650 million won support for daughter's jeonse
Kim actively clarified suspicions of monetary transactions with construction companies and hospitals in Jeonju, North Jeolla Province, where his constituency is located. According to the personnel hearing materials, Kim reported that he borrowed 50 million won from WOOJIN, a construction company based in Jeonju, shortly after being elected as a member of the 19th National Assembly in late August 2012. He then repaid the debt to WOOJIN at the end of March 2013.
The representative of WOOJIN, established in 1981, is President Kim Jong-won, a junior to Kim from Dongam High School. WOOJIN has won about 2 billion won in six government-funded projects in Jeonju since Kim was elected as a member of the National Assembly in 2013.
Kim explained, "The representative of WOOJIN is a high school junior of mine," adding, "At that time, I borrowed election funds and intended to repay them shortly after the compensation came out." He further remarked, "It is unreasonable speculation to associate the construction company with (collusion, etc.)."
In particular, Kim borrowed 100 million won from the director of an ENT hospital in Jeonju at an interest rate of 4% per month for two years but did not repay the principal even after the repayment date had passed. He clarified, "It was verbally agreed to extend the lending period at the same interest rate, as the conditions for principal repayment were not met."
He especially explained that he provided 650 million won in cash to support his eldest daughter's jeonse deposit without charging interest, stating, "It was neither an attempt to gift the money nor to evade gift tax," adding, "My eldest daughter decided to become independent after getting a job, the second is preparing for employment, and the youngest is on leave. All three daughters were in a situation where they would reside in Seoul."