Jogisuk "Praising Hotel-Style Rental Housing Is Embarrassing... A Bad Policy That Only Wastes Taxes"

Tourism Hotel Remodeling 'Anam Saenghwal'

Professor Jo Gisuk of Ewha Womans University Graduate School of International Studies is delivering the opening address at the inaugural academic conference of the Korean Public Diplomacy Association at the Four Seasons Hotel in Gwanghwamun on July 2nd. Photo by Yonhap News

[Asia Economy Reporter Kim Su-wan] Professor Cho Gi-sook of Ewha Womans University Graduate School of International Studies, who served as the Blue House spokesperson during the Roh Moo-hyun administration, criticized the government's policy of converting hotels into rental housing as a "bad policy that wastes taxpayers' money."

On the 2nd, Professor Cho posted on her Facebook under the title "Why It Is Difficult to Praise Anam Saenghwal," stating, "I tried to remain silent if possible, but some praise was so embarrassing that I felt compelled to comment."

First, Professor Cho said, "Of course, I am not criticizing the fact that 122 young people are living in remodeled communal housing at rents cheaper than market prices. Since the reality is that those who benefit are envied and even resented by those who do not, I want to praise the result as it is a commendable facility."

She continued, "I want to evaluate Anam Saenghwal as a bad policy that wastes taxpayers' money because it fails to distinguish between what the central government should and should not do," adding, "Good policies must be effective in terms of output relative to input."

She also pointed out, "The management costs of such small-scale communal housing will be higher," and "If a subsidiary of LH Corporation manages it while charging monthly rents less than half of the surrounding market prices, it means that public funds must be continuously injected to maintain it."

She further criticized the 'hotel-type rental housing' policy as being far from the core values the government advocates. Professor Cho said, "The benefits go only to a very small number of people in a specific area. It also contradicts the value of fairness that the current government frequently talks about," and asked, "How will the unfairness between young people living in one-room apartments in other areas paying twice the amount be resolved?"

Professor Cho strongly criticized the government's direct involvement in supply. She said, "It is a waste of taxes for the government to do what the private sector can do," and added, "The reason the government supplies public housing is to act as a check to prevent private sector abuses in the market. Unless it is communism, there is no country on earth that supplies 100% public housing."

Finally, she added, "I support spending taxpayers' money for better welfare and a better life. But I hope it is used efficiently."

Meanwhile, 'Anam Saenghwal' is a customized shared housing supplied by the Korea Land and Housing Corporation (LH) near subway stations and university areas to stabilize housing for university students and young people, with move-ins starting from the 30th of last month.

Anam Saenghwal was developed by LH in cooperation with the social enterprise Ibuki in Anam-dong, Seongbuk-gu, Seoul. It was built by remodeling a long-term vacant tourist hotel due to the COVID-19 pandemic and consists of a total of 122 units, including 56 duplex units and 66 standard one-room units (including 2 for the disabled), along with various community facilities. The rent is 50% of the market price, with a deposit of 1 million won and monthly rent ranging from 270,000 to 350,000 won.