Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the "13th Real Estate Market Inspection Meeting of Related Ministers" held on the 15th at the Government Seoul Office in Gwanghwamun, Seoul.
[Sejong=Asia Economy Reporter Kim Hyun-jung] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki announced on the 14th that an additional supply of 4,700 households can be provided in station areas within downtown Seoul through the public redevelopment project. He also emphasized that the number of housing units supplied in each complex can be increased by 58% compared to the current level through public reconstruction, and the burden on union members can be reduced by 37%.
Deputy Prime Minister Hong presided over the 13th Real Estate Market Inspection Meeting with related ministers at the Seoul Government Complex in Gwanghwamun, Seoul on the morning of the 15th, and made these remarks during his opening statement. He said, "A total of 70 sites applied for the public redevelopment project, and Seoul City reviewed 12 sites located in existing maintenance zones among them and selected 8 sites as pilot project candidates. Since each candidate site is located in a station area where high-density development is possible, if developed as planned, an additional supply of 4,700 households will be achieved within downtown Seoul," he explained.
The four sites not selected on this day will be re-examined at the next selection committee, and the sites selected today will be finally designated as public redevelopment maintenance zones where the project can be implemented after selecting public implementers (LH, SH) based on residents' consent and establishing maintenance plans. In addition, the selection results for 56 sites located in non-maintenance zones that were not included in the review will be announced in March.
Regarding the government's public reconstruction project, Deputy Prime Minister Hong also expressed that it can increase supply and reduce the burden on union members. Regarding the progress, he explained, "Among the 15 complexes that applied for preliminary consulting, we plan to respond with consulting results for 7 complexes," adding, "We reflected regulatory relaxations such as securing public interest including donation of land, zoning upgrades (from residential zone type 3 to quasi-residential zone, etc.), and easing the installation ratio of non-residential facilities in mixed-use complexes (from 10% to 5%)." He continued, "According to the preliminary consulting results, when public reconstruction is implemented, the number of housing units in each complex is analyzed to increase by an average of 58% compared to the current level, and the burden on union members is expected to decrease by an average of 37% compared to reconstruction carried out solely by the union," emphasizing, "The decision-making authority on whether to proceed with public reconstruction rests entirely with the owners such as the union and the promotion committee, so I hope they make reasonable decisions by referring to the consulting results."
With the comprehensive real estate tax and capital gains tax rates and criteria being strengthened from June 1, he also expressed expectations that listings will appear before then. He explained, "To encourage the release of housing listings, the implementation date for the strengthened comprehensive real estate tax and capital gains tax was set to June 1 this year, and we have guided housing sales to avoid the increased burden before then. Now, there are just over four months left until that implementation date," adding, "We are closely monitoring listing trends while expecting listings from multi-homeowners and others accordingly."
Furthermore, he expressed the intention to strengthen crackdowns and investigations on market disruption activities to stabilize the real estate market and establish fair order. Deputy Prime Minister Hong said, "The government's will to block speculative demand for housing is unwavering," and added, "We will strictly and firmly enforce the policy package prepared to block speculative demand, including tax strengthening and liquidity regulations." He also added, "To establish not only stability in the real estate market but also fair order, we will strengthen tax investigations and crackdowns on illegal activities such as disguised gifts and fraudulent subscription, which disrupt the market, with the determination to pursue responsibility throughout the year."
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