Byeon Changheum: "The 2·4 Measures Are Effective... Price Increases Will Be Suppressed"

"Comparing 2·4 Measures Shows How Much Profit Can Be Made"
"Consulting Through Integrated Support Center... Customized Consulting"
"Sufficient Supply Will Reduce Panic Buying"

Minister of Land, Infrastructure and Transport Byeon Chang-heum is responding at the Land, Infrastructure and Transport Committee plenary meeting held at the National Assembly on the 22nd. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Byeon Changheum, Minister of Land, Infrastructure and Transport, emphasized that the '2·4 Housing Supply Plan,' which has sparked controversy over its effectiveness, will be effective because it is faster than the existing development methods and offers greater profits to landowners. Minister Byeon explained that if this plan is established, housing prices could also stabilize.

On the 22nd, during a briefing to the National Assembly Land, Infrastructure and Transport Committee, Minister Byeon said, "This plan provides more incentives than before and simplifies administrative procedures, so associations can choose whether to proceed with the existing method or this new method. Comparing the two, it will be immediately clear how much faster and more profitable the projects proposed in the 2·4 plan are."

He added, "We have communicated with district mayors in Seoul and held Q&A sessions, and we plan to conduct consulting through the Integrated Support Center, as well as tailored promotions for landowners, construction companies, and developers."

In particular, in response to a question from Park Sanghyuk, a member of the Democratic Party of Korea, asking, "Do you have confidence that this plan can stabilize housing prices?" Minister Byeon replied, "Simply supplying a sufficient quantity will reduce the panic buying caused by housing shortages, and as a result, I think price increases can be curbed."

On the other hand, opposition party lawmakers expressed skepticism about the effectiveness of the 2·4 plan. Kim Eunhye, a member of the People Power Party, pointed out, "This plan was called a supply shock, but judging by the market's reaction, no one seems shocked. Do you think it is normal to announce supply plans without anything confirmed?"

Sim Sangjung, a member of the Justice Party, also questioned, "The supply plan stated that affordable prices accessible to ordinary people would be offered, but for ordinary people to buy a house, the price should be below 300 million won. How many houses can be supplied at such prices?" When Minister Byeon responded, "We are trying to keep prices as low as possible," Sim said, "Ordinary people have ultimately given up hope, thinking there is no house for them to move into."

Earlier, the government announced the 2·4 plan and stated that it would secure sites for 320,000 households in Seoul and 836,000 households nationwide by 2025. However, concerns have arisen in the market that private sector participation in key areas of the plan, such as public direct redevelopment and reconstruction, will be low. In fact, opposition to public direct implementation is forming among associations mainly in Gwangmyeong, Gyeonggi Province, and districts such as Gangnam-gu, Yangcheon-gu, and Guro-gu in Seoul.