On the 20th, the Ministry of Land, Infrastructure and Transport conducted a business report to the National Planning Committee, which selects the national policy tasks of the Lee Jae-myung administration. Measures for managing speculative demand in the real estate market to stabilize the housing market and plans to expand housing supply were reported. However, since the National Planning Committee is an organization that presents the roadmap for the next five years of the Lee Jae-myung administration, it is reported that direct and detailed measures for the recent soaring real estate market, particularly in Seoul, were not discussed.
According to the National Assembly and the government, the Ministry of Land, Infrastructure and Transport held a business report from 10 a.m. for about two hours at the Government Sejong Convention Center for the Economic 2nd Committee of the National Planning Committee. This business report was attended by Lee Chun-seok, the head of the Economic 2nd Committee, members of the planning committee and experts, and Moon Sung-yo, the Deputy Minister for Planning and Coordination of the Ministry of Land, Infrastructure and Transport, among 11 director generals.
In the business report, the Ministry of Land, Infrastructure and Transport reported on housing supply measures for national housing stability and housing support measures for young people, newlyweds, and elderly individuals. For housing supply measures, it seems that supply strategies mainly discussed public housing expansion. This is because President Lee identified public offering expansion as a key measure for stabilizing the real estate market.
President Lee noted in this election campaign that he would "expand the supply of various public offerings that are cheaper than market rates and do not raise speculation concerns," adding, "I will gradually increase the ratio of high-quality public rental housing and promote models for integrated urban public housing projects to expand public rental housing."
Accordingly, it is expected that the Ministry of Land, Infrastructure and Transport prepared a plan for developing and supplying various types of public housing suggested by President Lee, including ▲ land leasehold ▲ profit-sharing (buy-back conditional) ▲ equity accumulation ▲ area transition public rental housing.
It is also expected that plans for expanding supply through the reorganization of old planned cities like the first new towns and expanding the supply of the third new towns, increasing new construction rental housing, and revitalizing redevelopment and reconstruction projects are included.
It seems that measures for managing speculative demand in the real estate market were also suggested. This is anticipated as the National Planning Committee, which announced the 'Strategic Plan for Genuine Growth in Korea' on the 17th, stated that "reasonable management of speculative demand is necessary," and the Ministry of Land, Infrastructure and Transport is expected to have prepared related measures.
The National Planning Committee noted in the 'Strategic Plan for Genuine Growth in Korea' that "it is desirable for real estate prices to be determined by supply and demand in the real estate market, but speculative demand caused by excessive leverage effects needs to be managed reasonably" and emphasized, "We will ensure that past policies like 'buying homes with borrowed money' are not repeated."
Additionally, the Ministry of Land, Infrastructure and Transport reported on strategies for fostering balanced national development through five rivers and three specific areas, as well as creating growth hubs like RE100 industrial complexes. There were also discussions on strengthening safety management such as ground subsidence and the eco-friendly transition of the land and transportation industry for carbon neutrality.
However, it seems that these plans were only offered in a broad outline. A government official stated, "Since this business report serves as a report on the operational direction of all departments for the next five years, it is likely that detailed measures for stabilizing housing prices were difficult to include." A National Assembly official added that "departments are still in the stage of considering stabilization measures for the housing market," implying that confirmed concrete measures would be challenging to discuss.
The National Planning Committee requested that the Ministry of Land, Infrastructure and Transport thoroughly prepare detailed implementation plans for the tasks reported that day. Lee Chun-seok, the head of the Economic 2nd Committee, remarked, "For Korea's genuine growth, the Ministry of Land, Infrastructure and Transport must develop practical balanced development strategies as the key ministry for balanced growth" and asked for feasible policies to revive declining and dying local areas.
Meanwhile, regarding the recent increase in housing prices, especially in Seoul, the Presidential Office and the Ministry of Land, Infrastructure and Transport appear to be preparing separate policies. Cho Seung-rae, spokesperson for the National Planning Committee, stated in a briefing that "I need to check whether there was a report on housing prices in the Ministry of Land, Infrastructure and Transport's business report, but even if there was, it would likely have been only trends." He added, "(Stabilization measures for housing prices) are not issues that the National Planning Committee can discuss and conclude for policy measures. I believe it is appropriate for the Presidential Office and the Ministry of Land, Infrastructure and Transport, which are currently working, to monitor and make decisions on measures."