Minister Kim Yoon-duk of the Ministry of Land, Infrastructure and Transport said on the 29th that to rein in the rise in Seoul home prices, "if necessary, we should (use) real estate tax policy," adding, "From the standpoint of Kim Yoon-duk as an individual, I think property holding taxes should be increased." While leaving open the possibility of supplementary measures such as expanding the designation of land transaction permit zones (Toheo zones) and additional loan regulations, Minister Kim said, "Rather than a one-off response, we will present a comprehensive package."
At his first press briefing since taking office, held this day at a restaurant in Janggiro, Janggun-myeon, Sejong, Minister Kim was asked whether tax policy could be included among additional real estate measures. He answered, "I don't think it is appropriate for the MOLIT Minister to mention tax matters," but also said, "It does not seem (appropriate) to say that the MOLIT Minister is drawing up real estate policy while completely excluding tax matters."
Asked about his position on measures such as raising holding taxes to curb home prices, Minister Kim repeatedly stressed, "From a personal standpoint, not as Minister, I think it would be better to move in the direction of increasing holding taxes," while adding, "Please do not misunderstand this as any consultation (with related ministries)."
Minister Kim also left open the possibility of additional real estate measures. In particular, his view is to rule out no options, including demand-suppression steps such as designating Toheo zones in areas with sharply rising home prices like Mapo and Seongdong districts in Seoul or tightening household debt management. Minister Kim said, "Real estate policy includes demand-suppression measures, supply measures, and tougher judicial responses to speculation, among others. Based on the principle of a comprehensive package, we are preparing, so there is a possibility that many items will be included."
He went on, "Including Toheo zones and designating regulated areas, we will keep all options on the table and carry out (measures). Within the authority of the MOLIT Minister, I will do what can be done, and if a countermeasures meeting with related agencies is needed, we will hold one."
Minister Kim added, "What's important is to closely review how market conditions are unfolding," noting, "In the past week, the rate of increase in Seoul apartment sale prices was 0.19%, showing a fairly rising trend," and "We are watching very closely and seriously."
While leaving open the possibility of additional real estate measures, Minister Kim avoided a direct answer on timing. He said, "I keep hearing that additional measures are needed," but added, "At the MOLIT level, it seems premature to say now whether they are needed or not, and if it is judged that additional measures are needed, we will of course take them."
However, Minister Kim said he plans to announce comprehensive measures rather than rolling out one-off steps from time to time as under the Moon Jae-in administration, when dwelling prices surged. The Moon administration announced real estate measures 28 times.
Minister Kim said, "Rather than issuing one-off measures more than 20 times like the Moon administration, we will announce comprehensive measures." He added, "Frankly, there were views that a certain response was needed before Chuseok, but one-off responses—what past governments called nimble responses—ultimately left many aftereffects," noting, "We should move quickly when needed, but the broad stance is to proceed on the basis of a comprehensive package."
Regarding criticism that the "9·7 dwelling supply" measures lack effectiveness, Minister Kim expressed confidence, saying, "It will be different from the past." He said, "In past governments, the plan to supply dwellings in central Seoul relied on using outdated government office sites and idle sites," adding, "There is distrust because the policy tools are similar, leading to a belief that (supply will not materialize). However, by analyzing why past policies failed, we will push dwelling supply through a special law that can grant enforcement power (for dwelling supply), and once this becomes visible, concerns will dissipate."
In particular, regarding the Seoul city government's announcement that it will supply 200,000 apartment units over six years in the Han River Belt, Minister Kim said, "I did not fully grasp the specific details." As criticism arose that the Ministry and the Seoul city government are out of sync on dwelling supply, he stressed, "Because the reality is that (dwelling supply) cannot proceed without cooperation with the Seoul city government, we will ensure thorough cooperation."
That day, Minister Kim addressed the Lee Jae-myung administration's assignment of the main role in public dwelling supply to the Korea Land & Housing Corporation (LH), saying, "With the dwelling market in a very poor state, if we leave projects entirely to the private sector, a supply cliff is effectively expected," adding, "From that perspective, it would be better to proceed under public leadership. It will proceed with an appropriate balance between public sales and public rentals."
In particular, regarding doubts over whether LH, burdened with excessive liability, can properly play the role of dwelling supplier, Minister Kim said, "A substantial amount of payment for previously sold land has come in, so it can be managed without issuing bonds," but added, "However, as apartments continue to be supplied and rentals proceed, the question of the housing welfare budget will arise again five years later. The LH Reform Committee will consider this (as well) along with overall reforms." He continued, "Because providing the public with quality dwelling supply entails significant national losses and disruption, state finances may be injected."
On the construction of the new Gadeokdo airport, Minister Kim's position is that "there is no need at all to harbor doubts about whether it cannot be done." He said, "The Gadeokdo new airport will proceed as originally promised," adding, "We are listening to various opinions now, and we will ensure that (follow-up steps such as re-bidding) can proceed in earnest at the end of this year."