Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport said the possibility of raising floor area ratios for the Ilsan new town redevelopment project in Goyang, Gyeonggi, is "open," adding that there is a need to discuss it through public debate. On President Lee Jae-myung's call to overhaul the system for purchasing dwellings to rent, Kim said, "If necessary, we must make a decision," lending support.
The Minister told reporters at a meeting on the leading districts for first-phase new town redevelopment held at Goyang City Hall on the 11th, "I am concerned that the debate over floor area ratios is being approached as a matter of who is 'right or wrong,'" adding the remarks.
The Minister said, "What matters in the current dwellings issue is real estate stability, meaning we need ample supply," adding, "Because the (first-phase new town) redevelopment is at a very early stage, we will provide support not only for floor area ratios but also for any additional measures the Ministry of Land, Infrastructure and Transport (MOLIT) can offer."
Addressing the point that, unlike public-led redevelopment projects that receive floor area ratio benefits, private reconstruction and redevelopment do not, the Minister said, "Public (projects) get more incentives, while private reconstruction and redevelopment will gain speed through permitting support," adding, "We are already providing various forms of support to the private sector, so criticisms that demand more like asking for extra rice cakes are not acceptable."
In particular, the Minister stressed regarding the controversy sparked by President Lee's social media post over scaling back the heavy capital gains tax benefit for rental business operators, "If it can stabilize the real estate market and supply dwellings, we must make a decision."
On the 8th, President Lee wrote on his social media, "It would be one thing if you built dwellings for rent, but it is strange that you can buy as many homes as you want just by registering as a rental business operator," arguing that if the benefits for rental business operators are reduced, multi-home owners will list dwellings for sale, helping stabilize the market.
The Minister's remarks are seen as signaling an intention to follow the president's argument. The Minister said, "The key condition regarding the benefits for rental business operators is whether the policy helps stabilize the market," adding, "If it can supply dwellings to the public, we must make a decision, and I believe we are in that position."
In response to a question about follow-up measures to supply dwellings, the Minister reiterated, "The government is doing everything it can to prepare measures to stabilize the real estate market." Referring to media criticism during the Moon Jae-in administration over numerous dwellings policy announcements, the Minister explained, "It is not that the Ministry of Land, Infrastructure and Transport (MOLIT) announces at a specific time; we will announce as measures are finalized, from time to time."
Before the meeting, the Minister visited Gangchon Village Complex 5 in Madu-dong, Ilsandong-gu, Goyang, with Gyeonggi Province Vice Governor for Administrative Affairs Kim Sung-jung, Goyang Mayor Lee Dong-hwan, and residents. According to the Ministry of Land, Infrastructure and Transport and others, from the second half of this year, procedures to promote redevelopment projects in first-phase new towns will be streamlined overall. This is due to the introduction of a special case that allows for swift promotion by integrating the special redevelopment plan and the project implementation plan, which had been established sequentially, under the amended Special Act on Maintenance and Support for Aging Planned Cities. Redevelopment projects underway in places including Ilsan, Bundang in Seongnam, and Pyeongchon in Anyang will be subject to this system.