[Column] President Supports Minister of Land, Infrastructure and Transport Amid 'Policy Failure'

[Asia Economy Reporter Moon Jiwon] When news spread on the 2nd that President Moon Jae-in called Minister of Land, Infrastructure and Transport Kim Hyun-mi for an emergency briefing on the unstable real estate market, the industry buzzed with the phrase "the inevitable has come." Despite the government announcing more than twenty measures to curb soaring housing prices, criticism has intensified as these only caused side effects such as sharp rises in sales and jeonse prices. There were even rumors of a ministerial replacement.

However, the briefing ultimately appeared to empower Minister Kim rather than hold the Ministry of Land, Infrastructure and Transport accountable for its repeated missteps. President Moon mentioned the necessity of expanding supply while ordering stronger regulations on multi-homeowners. There was no apology to the common people who had trusted and waited for the government’s words, nor any reflection on policy failures.

Like the proverb "Give a disliked child an extra rice cake," was this another chance given to Minister Kim, who has failed to control housing prices for years? Many citizens have lost trust in the government due to successive short-term "pinpoint regulations" and repeated policy failures, but reflection from the Blue House and the Ministry of Land, Infrastructure and Transport remains a distant prospect.

"The government’s real estate policy has now lost trust. The government must apologize to the people for its policy failures so far. Only then can a fundamental shift in policy be possible to prevent housing price surges and achieve housing stability," wrote Sim Sang-jung, leader of the Justice Party, on her Facebook the day before, criticizing the Moon Jae-in administration’s real estate policy failures.

In fact, even within the government, ruling party, and progressive groups, there are talks that trust in government policy is collapsing. A Ministry of Land, Infrastructure and Transport official who sold a house in Seoul and moved to Sejong lamented, "I’m worried I might have to buy a house in Seoul again." On the same day, when Presidential Chief of Staff Noh Young-min, a two-homeowner, said he would sell his apartment in Banpo, Seoul but quickly corrected it to a house in Cheongju, Chungbuk, the internet mocked this as "Blue House aides’ love for Gangnam." With huge capital gains at stake, can Blue House aides be any different?

Minister Kim has been busy appearing on broadcasts recently to explain amid controversy that the June 17 measures failed. Regarding criticism that housing prices were not controlled despite 21 measures, she shifted responsibility by saying, "The media attached all sorts of things."

Due to the government’s ongoing regulations, ordinary citizens have found it difficult to properly understand complex rules such as regional real estate loan limits, subscription conditions, and mandatory residence requirements for reconstruction. A typical example is the recent surge in contract holders in Incheon and Yangju who, unaware of changed regulations, face the risk of losing tens of millions of won in deposits.

Instead, an apology came from Lee Hae-chan, leader of the Democratic Party of Korea. On the 3rd, he bowed his head saying, "The real estate market is very unstable, and I deeply apologize to the people." He added, "It is clear that emergency measures and financial regulations alone have limitations." It is regrettable that the Blue House and the Ministry of Land, Infrastructure and Transport seem unaware of the government’s well-known policy failures.