[Asia Economy Reporter Yoo In-ho] Byeon Chang-heum, President of Korea Land and Housing Corporation (LH), has been appointed as the rescue pitcher for real estate policy.
Byeon, a real estate and urban housing expert who has supported rental housing measures on the ground and carried out urban regeneration New Deal and public rental housing projects, was selected as the new Minister of Land, Infrastructure and Transport to change the current government's real estate policy failure, characterized by the jeonse crisis and all-in purchases.
Market forecasts suggest that Byeon’s real estate policy direction will focus on a public housing blueprint and the promotion of Korea-style New Deal policies.
However, experts and the market expect that the existing framework of real estate policy will not change significantly, as Byeon has shown agreement with the current real estate policies.
◆ Will he strongly drive urban regeneration projects? = Byeon is regarded as an expert in housing supply with a high understanding of the Moon Jae-in administration’s housing policies.
Born in Uiseong, Gyeongbuk, Byeon graduated from Seoul National University with a degree in economics and earned a master's degree in urban planning and a doctorate in public administration from the same university.
He has served as a senior researcher at Seoul Metropolitan Development Corporation, associate research fellow at Seoul Institute, professor at Sejong University, and director of the Korea Urban Research Institute, a non-profit private research organization, where he considered policy alternatives in housing welfare and urban poverty.
During Mayor Park Won-soon’s second term in 2014, he served a three-year term as president of Seoul Housing and Communities Corporation (SH), gaining experience as an administrator. He also participated as a member of the Presidential Committee on Balanced National Development and the Special Committee on Urban Regeneration, engaging in balanced national development and urban regeneration policies.
In this context, Byeon, recognized as an expert in urban planning, urban regeneration, and housing supply policies, is expected to prioritize the urban regeneration New Deal policy.
◆ Will he expand public housing supply? = Given that Byeon, an expert in housing supply including urban regeneration, is becoming the head of the Ministry of Land, Infrastructure and Transport, it is anticipated that there will be a stronger push for government supply policies such as public housing.
There is speculation that the Blue House’s intention is for Byeon, who has many ideas in various development projects including urban planning and has gained diverse experience in urban regeneration, to devise innovative measures to expand housing supply in the Seoul metropolitan area, where supply is insufficient.
In fact, Byeon has devoted efforts to swiftly designating districts for the 3rd New Towns to alleviate housing supply shortages, and LH has been assigned to supply public jeonse, a core part of the government’s rental housing measures announced last month.
Regarding supply measures, Byeon said, "If we come up with good ideas and improve unnecessary regulations just a little, we can achieve tremendous supply effects."
◆ Will he calm the boiling public sentiment? = Attention is focused on how Byeon, who is taking charge of real estate policy for the second time under the current government, will stabilize the real estate market, which is in turmoil due to the jeonse crisis.
Some believe that the current housing situation is far from easy, and since the Blue House has declared a 'war against speculative forces,' regulatory policies will continue unchanged. Since the implementation of the Lease Protection Act, the jeonse shortage has worsened, which has turned into increased housing purchases, putting upward pressure on mid- to low-priced housing. Due to the balloon effect, house prices have been fluctuating mainly in local metropolitan cities that had been quiet until now.
However, there are no suitable additional measures. This is also Byeon’s biggest challenge. Even after expanding regulated areas such as speculative overheating zones and adjustment target areas on the 19th of last month, house prices show no sign of falling easily due to excess liquidity in the market. Recently, the government downgraded Daegu’s Suseong-gu, already a speculative overheating zone, to an adjustment target area.
Experts expect Byeon to continue the existing real estate policy stance. Since Byeon has shown support for the current government’s real estate policies, it is anticipated that the regulation-heavy real estate policy will not change.
At a recent National Assembly Land, Infrastructure and Transport Committee briefing, Byeon expressed support in principle for the Lease Protection Act, saying, "(The principle of housing policy) is to allow tenants to live for a sufficient period, and no country completely leaves housing to the market."
Regarding criticism that the government treats owners of three houses as speculators, Byeon emphasized, "There may be circumstances, but it is right to impose burdens on ownership."
He also argued that the current government’s housing policy is better than those of the Lee Myung-bak and Park Geun-hye administrations. When asked by Song Seok-joon, a member of the Future United Party, "If you compare the housing policies of the three governments (Lee Myung-bak, Park Geun-hye, Moon Jae-in), where does this government rank?" Byeon replied, "This government is the best. Among the ratings of 'high, medium, low,' it is above medium-high."
A government official said, "Byeon has always held key positions in major national projects of the current government such as urban regeneration, housing welfare roadmap, and construction of the 3rd New Towns despite various role changes. In fact, he has played the role of a think tank that practically drew the current real estate policy blueprint, so he knows the original purpose of the policy best."
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