[Asia Exclusive] Experienced Sharp Rise in Housing Prices from 2005 Comprehensive Real Estate Tax... Policy Expert with 25 Years at Ministry of Land, Infrastructure and Transport

People Power Party Real Estate Market Normalization Special Committee Chair Actively Voices
"A Bipartisan Discussion Body with Both Ruling and Opposition Participation Is Needed"

Song Seok-jun, member of the People Power Party./Photo by Dongju Yoon doso7@

[Asia Economy Reporter Kim Hyemin] Song Seokjun, a member of the People Power Party, is a policy expert who has served in the Ministry of Land, Infrastructure and Transport for 25 years.

After passing the 34th Administrative Examination, he began his public service career in 1991 as an official in charge of the first phase of new towns. During the Kim Dae-jung administration, which was launched amid the International Monetary Fund (IMF) crisis, he belonged to the Land Policy Division and created measures to revitalize the real estate market. In 2005, while concurrently handling housing welfare and housing fund policies, he was solely responsible for designing the first-time homebuyer fund system, a supplementary policy to the comprehensive real estate tax (종부세) introduced in the August 31 measures.

After the introduction of the comprehensive real estate tax, Song witnessed the explosive increase in demand for the first-time homebuyer fund system, which was created as a buffer to prevent a sharp drop in housing prices. He experienced how policies can deviate from their original intentions. He recalled, "At that time, (bureaucrats) were confident that once the comprehensive real estate tax was introduced, multi-homeowners would put their houses on the market, leading to a decline and stabilization of housing prices. It was implemented as the final chapter of Roh Moo-hyun’s housing policy." He added, "However, in reality, the burden was passed on to tenants, causing a surge in monthly rent prices, which then led to a sharp rise in housing prices."

Entering politics as a member of the 20th National Assembly in 2016, he currently serves as the chairman of the People Power Party’s Special Committee for Normalizing the Real Estate Market, actively voicing alternatives to the Moon Jae-in administration’s real estate policies. Under the leadership of the special committee, bills have been proposed including ▲raising the deduction amount for single-homeowners to 1.2 billion KRW ▲up to 50% reduction in property tax for single-homeowners with official property prices exceeding 900 million KRW ▲temporary acquisition tax relief until 2021.

He proposed expanding the real estate special committees of all parties to foster bipartisan discussions. Song emphasized, "If the Democratic Party of Korea admits its mistakes regarding housing policy and commits to reform, it must listen to the voices of the market and the opposition." He stressed, "Through the ruling and opposition parties’ real estate special committees, both sides must come together to create reasonable systems in taxation and regulation."

◇Career

▲Born in 1964 ▲Graduated from Sunggok Elementary School and Gyeongnam Middle School in Icheon ▲Graduated from Gyeongnam Jong High School in Icheon and Inchang High School in Seoul ▲Seoul National University, Department of International Economics ▲Master’s in Policy Studies, Graduate School of Public Administration, Seoul National University ▲Ph.D. in Economics, University of Missouri, USA ▲Passed the 34th Administrative Examination ▲Director General of Construction Policy Bureau, Ministry of Land, Infrastructure and Transport, 2014 ▲Director of Seoul Regional Land Management Office, 2015 ▲Member of the 20th and 21st National Assembly