Hong Nam-ki: "Public Participation High-Density Reconstruction, a Plan Discussed Extensively with Seoul City... Not a Disagreement or Confusion"

"Suspicious Transactions of Funds for High-Value Housing Transactions Over 900 Million Won Will Be Subject to Continuous Investigation"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is speaking at the 1st Real Estate Market Inspection Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 5th. Photo by Moon Ho-nam munonam@

[Sejong=Asia Economy Reporter Joo Sang-don] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 5th, "The 'Public Participation High-Density Reconstruction' among the supply measures announced yesterday is a plan prepared through extensive discussions between the Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport, and the Seoul Metropolitan Government, and I want to clarify that there are no disagreements or confusion regarding this."

Deputy Prime Minister Hong made these remarks while presiding over the "1st Real Estate Market Inspection Meeting of Related Ministers" at the Government Complex Seoul on the same day.

The government announced the "Housing Supply Expansion Plan" the previous morning, which includes supplying a total of "262,000 housing units + α" mainly in the Seoul metropolitan area. This includes 132,000 new supply units + α, 60,000 units for pre-sale brought forward from scheduled public sale volumes, and 70,000 units already announced in the 5th and 6th measures. To achieve this, the government plans to introduce "Public Participation High-Density Reconstruction," supplying a total of 50,000 units over the next five years, with public institutions such as the Korea Land and Housing Corporation (LH) participating and some housing units being donated in kind. The floor area ratio will be increased up to 500%, and the floor height restriction, previously capped at 35 floors, will be relaxed to 50 floors.

The controversy over discord between the government and the Seoul Metropolitan Government began that afternoon. At a press briefing where Seoul explained the detailed supply plan for the Housing Supply Expansion Plan, the city refuted by stating, "The city has never lifted the 35-floor regulation." In response to the controversy, the city issued a press release clarifying that "it was not opposing the project itself but rather presenting additional opinions that the private reconstruction sector (not public) also needs improvement."

Deputy Prime Minister Hong once again emphasized the government's firm stance on cracking down on disruptive activities in the real estate market. He said, "Suspicious transactions regarding the source of funds for housing sales over 900 million won will be continuously investigated, and the results will be regularly disclosed," adding, "Major planned development sites under the supply plan will be continuously monitored, and if there are concerns about overheating, a planned investigation will be immediately initiated."

The government plans to hold the Real Estate Market Inspection Meeting of Related Ministers chaired by the Deputy Prime Minister weekly going forward. Through this, the market will be monitored, and effective countermeasures will be developed. Additionally, a rapid response team will be operated to monitor the real estate market daily and support the Real Estate Market Inspection Meeting of Related Ministers.