Next Month's 2nd New Housing Site Announcement: "Housing Supply to Proceed as Scheduled"

Deputy Prime Minister for Economy Hong Nam-ki (center) and Minister of Land, Infrastructure and Transport Byeon Chang-heum (second from right), along with other attendees, bow their heads in apology on the 7th at the Government Seoul Office in Jongno-gu, Seoul, before the announcement of the "Message to the People Regarding Real Estate." / Provided by the Ministry of Land, Infrastructure and Transport.

[Asia Economy Reporter Jo Gang-wook] The government will announce the location of the second phase of new public housing sites, a follow-up measure to the February 4 real estate policy, next month. Despite suspicions of land speculation involving 10 billion won worth of land in the Gwangmyeong-Siheung new town by employees of Korea Land and Housing Corporation (LH), the government plans to proceed with the housing supply measures on schedule.

According to the Ministry of Land, Infrastructure and Transport on the 7th, the government held a real estate-related ministers' meeting at the Seoul Government Complex, chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, and announced that the housing supply measures, including the February 4 supply plan to provide 830,000 housing units, will be implemented as scheduled.

The government plans to first disclose this month the candidate sites selected through consultations with the private sector and local governments for the February 4 supply plan, as well as the second phase of public redevelopment candidate sites under the August 4 plan.

Additionally, the location of the second phase of new public housing sites will be announced next month. The government emphasized that thorough preparations will be made to prevent any speculation concerns.

In June, the government plans to start recruiting tenants for public rental housing newly introduced in last November's rental policy.

In July, pre-subscription for the 3rd phase new towns will begin, and candidate sites for urban public housing complex projects to be promoted this year under the February 4 plan will also be announced.

In a joint statement titled "A Message to the People," issued under the names of Deputy Prime Minister Hong Nam-ki, Minister of the Interior and Safety Jeon Hae-cheol, Minister of Land, Infrastructure and Transport Byeon Chang-heum, Director of the Office for Government Policy Coordination Koo Yoon-chul, and Commissioner of the National Tax Service Kim Dae-ji, the government said, "The real estate market is at a critical juncture where it could either stabilize or return to instability," and stressed, "The government's policy will and sincerity, which have been devoted to stabilizing the real estate market through all policy efforts, must not be undermined by this incident."

In the market, concerns are growing that the government's 25th real estate measure and the first under Minister Byeon Chang-heum of the Ministry of Land, Infrastructure and Transport may lose momentum as suspicions of real estate speculation spread widely.

The Prime Minister's Office, Ministry of Land, Infrastructure and Transport, and other government joint investigation teams have launched a full-scale investigation into land transactions involving tens of thousands of public officials, public institution employees, and their families. Amid public distrust and demands from opposition parties for a state audit, there are even concerns that public housing development projects such as the 3rd phase new towns could face setbacks.

The investigation team plans to verify land transaction details of public officials and their families next week and announce the first phase of investigation results. However, if more people than expected are found to be involved in purchasing land in the 3rd phase new towns, the scale of the investigation may expand, and referrals for prosecution could increase, potentially escalating the fallout.

To dispel such concerns, the government emphasized, "We have already done everything possible, but with the mindset of ‘advancing one step further on the hundred-foot pole’ (百尺竿頭 進一步), we will proceed consistently and unwaveringly to ensure that trust in real estate policy is not damaged."