'Multi-homeownership Controversy' Kim Hyun-ah, SH President Nominee, "Received Era-specific Privileges" (Summary)

City Council Personnel Hearing... "Support Public Redevelopment, Completely Block Employee Speculation"

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] Kim Hyun-ah, the nominee for president of Seoul Housing and Communities Corporation (SH), emphasized that she will actively support government-led public redevelopment and restore trust in public enterprises through strong anti-speculation measures. Regarding the controversy over multiple home ownership, including apartments in Cheongdam-dong, Gangnam-gu, Seoul, she said, "I received a special privilege of the times."

Kim stated this on the morning of the 27th at the SH Corporation president confirmation hearing special committee held at the Seoul Metropolitan Council. The council had originally planned to hold the hearing on the 19th, but postponed it considering the elevation of social distancing to level 4 in the metropolitan area and the spread of COVID-19.

In her policy opinion presentation before the Q&A session, Kim promised to strengthen support capabilities for redevelopment projects promoted by the government, including public redevelopment. Kim said, "In Seoul, where land for housing is depleted, redevelopment projects in existing urban areas are necessary to secure public housing stably," adding, "I will actively participate in the government's supply policy to contribute to citizens' housing stability."

She also pledged to restore trust in public enterprises that fell due to the Korea Land and Housing Corporation (LH) speculation scandal. Kim said, "We will implement strong anti-speculation measures for executives and employees to secure citizens' trust." She added, "While cooperating and supporting Seoul City to solve housing and urban problems, I will continuously identify issues on the ground."

Along with this, she promised to focus on qualitative improvement beyond the quantitative expansion of public housing. Kim said, "The most important role of the corporation is to resolve housing problems and improve welfare through stable housing supply and management," and added, "We will promote quality innovation of public rental housing, which is perceived as low quality and negatively affecting surrounding housing prices, by creating housing external environments and infrastructure to increase regional value."

Other policy opinions included financial soundness of the corporation, restructuring overlapping projects with the central government, and minimizing vacancies in purchased rental housing.

[Image source=Yonhap News]

At this hearing, where the Democratic Party of Korea held an absolute majority with 14 out of 15 members, Kim's multiple home ownership became a controversy. Kim owns four real estate properties: one apartment in Cheongdam-dong with her husband, one commercial building in Jamwon-dong, Seocho-gu, one apartment in Bugok-dong, Geumjeong-gu, Busan, and one officetel in Jungang-dong, Jung-gu, Busan.

Kim reflected, "I already own a house, and given my age group, it was easier to own a home than now, and I received a kind of special privilege of the times as my assets increased with rising housing prices." She said, "Now, those who bought houses suffer from tax burdens, and those who do not have houses face skyrocketing jeonse (long-term deposit lease) prices," adding, "Sustainable supply and restoration of trust in government policies are necessary."

Kim acknowledged issues pointed out by city council members based on her past asset disclosure during her time as a member of the National Assembly, such as lending money to her mother without a promissory note and partially omitting rental income tax from a commercial building leased to her mother.

Additionally, concerns were raised about Kim's 20-year tenure at the Korea Construction Industry Research Institute, a private institution established by construction companies.

Kim is an urban planning expert who earned bachelor's, master's, and doctoral degrees in urban planning from Gachon University. She entered politics by being elected as a proportional representative for the Saenuri Party in the 20th general election. Until April, she served as an emergency committee member of the People Power Party. She is credited with contributing to Mayor Oh Se-hoon's victory by overseeing the pledge management in the April 7 by-election.

Kim is also known as a prominent critic of the Moon Jae-in administration's real estate policies. She sharply criticized the government's new lease protection law and other measures, claiming they caused a housing supply shortage. She called the administration a "three no (無) regime"?ignoring the market, ignorant of market functions, and incompetent in policy?and clashed with former Minister of Land, Infrastructure and Transport Kim Hyun-mi.

The SH Corporation president position has been vacant for three months. If Kim is finally appointed, real estate policies promised by Mayor Oh, such as long-term rental housing and various redevelopment projects, are expected to gain momentum. Mayor Oh can appoint Kim as SH president regardless of the city council's opinion. According to the agreement related to the confirmation hearing between the city and the council, the council's hearing results do not bind the mayor's appointment authority. The term of the SH Corporation president is three years.