"2·4 Measures New Housing Site Candidates to Be Announced by Q2... 2.05 Million Homes to Be Supplied by 2025 (Comprehensive)"

Deputy Prime Minister Hong Nam-ki to Chair the 15th Real Estate Market Inspection Ministerial Meeting on the 17th

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the "15th Real Estate Market Inspection Meeting of Related Ministers" held at the Government Seoul Office Building on the morning of the 17th. Photo by Kang Jin-hyeong aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced on the 17th that it plans to announce new public housing site candidates under the 2·4 measures by the second quarter. It emphasized that if all supply measures are implemented, 2.05 million housing units can be supplied by 2025.

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki made these remarks during the 15th Real Estate Market Inspection Meeting with related ministers held at the Government Seoul Office in the morning.

Deputy Prime Minister Hong said, "The new public housing sites, totaling about 250,000 units, will be thoroughly prepared in detail such as zoning to prevent market confusion, and the announcement of candidate sites will be completed swiftly by the second quarter."

He added, "We will submit related bills to the National Assembly within this week, push for amendments by March, and ensure there are no setbacks in implementation by June."

The government plans to promote amendments to the Special Act on Public Housing, the Urban Maintenance Act, the Small-scale Maintenance Act, and the Urban Regeneration Act through legislative proposals by lawmakers.

Deputy Prime Minister Hong also said, "For the urban public housing complex projects and public direct implementation maintenance projects, candidate site selection can begin with the enforcement of the law, so we will hold intensive briefing sessions for project stakeholders in candidate areas for 2 to 3 months starting this month."

He also explained the scale and background of the 2·4 measures. Hong said, "If all supply measures are implemented, 2.05 million housing units will be supplied by 2025, which is the largest scale since the 2000s."

The 2·4 measures include 836,000 units, and when adding the previously announced measures of 1.27 million units in the metropolitan area and 75,000 units in the jeonse (lease deposit) measures, even after subtracting 127,000 overlapping units, the total exceeds 2 million units.

Deputy Prime Minister Hong explained, "The 2·4 measures maintain the existing union-type reconstruction and maintenance while increasing the housing supply speed by adding profit rate increments and providing additional exemptions and relaxations on various regulations. It is a public-led fast track policy that broadens the range of choices."

He urged, "Given experiences such as the significant adjustment in Seoul apartment sale prices during the global financial crisis, market participants should now participate with a cooler head and a longer-term perspective."

Regarding claims that not granting priority supply rights (move-in rights) within planned project areas constitutes 'infringement of property rights,' he disagreed.

Deputy Prime Minister Hong said, "There were criticisms that compensating in cash instead of granting move-in rights for houses acquired within planned project areas after the 2·4 measures is an excessive infringement of property rights. However, under current law, cash compensation is the principle, and compensation based on appraisal is legitimate."

He also stated that the 8·4 supply measures and 11·19 measures announced last year will proceed without setbacks.

Deputy Prime Minister Hong said, "The Tae-reung Golf Course site will be designated as a public housing district in the second half of the year. The Seoul Procurement Office site will be relocated and developed to improve project procedures and shorten the project period."

He added, "For the 11·19 measures, we will strive to achieve the nationwide supply of 49,000 units in the first half of the year without setbacks, and institutional improvements such as the establishment of a new loan guarantee for new purchase contracts announced on February 4 will be completed by March."

The government emphasized that it will also do its best to eradicate unfair transactions, one of the three pillars of real estate market stabilization measures along with supply expansion and speculative demand management.

According to Deputy Prime Minister Hong, the government has cracked down on 86 cases (409 people) of unfair transactions such as illegal activities in the apartment sales market so far this year, indicting and referring 18 cases (42 people). Tax audits are also being conducted on 5,872 suspects of tax evasion.

He said, "Especially regarding cases where contract cancellations occur after signing at record-high prices, the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board will conduct intensive inspections, and if disruptive acts are detected, strict accountability will be enforced without leniency."