Housing Price Stability, Public Development, LH Probation... Challenges Facing Nominee Noh Hyung-wook

Former Ministry of Economy and Finance Official, Former Chief of the Office for Government Policy Coordination
Career Unrelated to Housing Supply Sector
However, Praised for Conflict Resolution and Administrative Skills
Follow-up Measures to 2·4 Plan, Prioritizing Housing Price Stability

No Hyung-wook, Minister of Government Policy Coordination, is giving a briefing on the "Measures to Eradicate Digital Sex Crimes" at the Joint Briefing Room of the Government Seoul Office in Jongno-gu, Seoul, on April 23 last year. Photo by Kim Hyun-min kimhyun81@

No Hyung-wook, a former senior economic bureaucrat, has been nominated as the third Minister of Land, Infrastructure and Transport under the Moon Jae-in administration. Although he is not a real estate expert, which makes the appointment somewhat unexpected, he is known to have a good understanding of the current government's policies, as well as excellent administrative skills and conflict resolution abilities, raising expectations that existing real estate policies will be smoothly implemented.

Appointed as the new Minister of Land, Infrastructure and Transport in the cabinet reshuffle on the 16th, No is expected to focus on resolving the chaos in Korea Land and Housing Corporation (LH) and its affiliates caused by the land speculation scandal involving LH employees, and on implementing existing supply measures once he takes office after the confirmation hearing. The top priority is to successfully carry out public redevelopment and reconstruction, urban public housing complex projects, and public direct maintenance projects introduced through previous government measures.

The Ministry of Land, Infrastructure and Transport recently announced candidate sites for public redevelopment, reconstruction, and urban complex development, accelerating housing supply efforts. This month, about 110,000 new housing units in the metropolitan area’s second phase of new sites will be disclosed, and next month, the third phase of urban complex development candidate sites will be announced. In July, designated districts will be selected mainly based on sites that have secured at least 10% resident consent among all candidate sites.

There are concerns that public development may lose favor due to expectations of deregulation in the private sector following the inauguration of Seoul Mayor Oh Se-hoon. Therefore, the government needs to create successful cases as soon as possible to stabilize housing prices. No must also expedite the passage of follow-up bills related to the 2·4 housing plan currently pending in the National Assembly. Given the angry public sentiment on real estate confirmed during the Seoul mayoral election, passing these bills is expected to be challenging.

Resolving the confusion within LH, the main body of the 2·4 housing plan, is also a key task. Since Minister Byun Chang-heum moved to the Ministry of Land, Infrastructure and Transport in December last year, the LH president position has been vacant for four months. Many employees are under police investigation for land speculation allegations in areas such as Gwangmyeong-Siheung, and no organizational restructuring plan has been prepared since the speculation controversy. Additionally, efforts must be made to reduce tax resistance caused by the increase in official property prices and to stabilize the jeonse and monthly rent reporting system, which will be fully implemented in June.

Industry insiders have expressed some surprise at the nomination of a former Ministry of Economy and Finance bureaucrat as the Minister of Land, Infrastructure and Transport. No graduated from Gwangju Jeil High School and Yonsei University’s Department of Political Science and Diplomacy, and entered public service through the 30th Administrative Examination. He mainly worked in budget and finance at the Ministry of Economy and Finance. Compared to his predecessor Byun Chang-heum, a housing supply expert who served as president of Seoul Housing and Communities Corporation (SH) and LH, No’s career is somewhat detached from real estate.

The opposition party also criticized the reshuffle, saying, "There is no real policy shift needed, just a personnel change for a momentary change of phase." Kim Ye-ryeong, spokesperson for the People Power Party, said in a statement that day, "There are concerns that No Hyung-wook, nominated as the successor to former Minister Byun who resigned in disgrace over the LH scandal, will become 'Kim Hyun-mi Season 2.'"

However, since No served as the head of the Office for Government Policy Coordination, which coordinates inter-ministerial affairs, and is known for his excellent administrative skills and affability, there are expectations that he will effectively push sensitive real estate measures. While working as the Director-General for Fiscal Management at the Ministry of Economy and Finance, he led major public sector structural reform measures such as adjusting public institution functions and implementing the wage peak system. Shortly after his nomination, No told the Ministry of Land, Infrastructure and Transport press corps, "I am well aware of the public’s concerns regarding the Ministry’s responsibilities," and pledged, "I will prioritize housing stability and the eradication of speculation."