청정책실장, 부동산 가격 상승 지적에 "우리나라뿐 아닌 글로벌 현상"

Lee Ho-seung, Director of Policy at the Blue House (left), is responding to questions at the full meeting of the Steering Committee held at the National Assembly in Yeouido, Seoul, on the 23rd. Photo by National Assembly Press Photographers Group

[Asia Economy Reporter Kang Juhee] Lee Hoseung, Chief of Policy Office at the Blue House, said on the 23rd regarding the rise in real estate prices, "We apologize for the instability in the real estate sales and jeonse markets," but added, "(The rise in real estate prices) is not unique to our country but a global phenomenon."

Lee attended the full meeting of the Steering Committee held at the National Assembly in the afternoon and responded to the question, "Is the government's real estate policy failing to keep up with market conditions?" by stating, "I believe multiple factors are complexly contributing to the recent rise in jeonse prices."

He said, "There has been migration demand centered around the Gangnam area, and as sales prices rise, jeonse prices are also observed to rise accordingly," adding, "The government's judgment is that continuously increasing supply is a priority to stabilize the jeonse and monthly rent markets."

He continued, "While implementing short-term measures such as public jeonse housing and new purchase agreements announced last November, it is important to steadily push forward supply measures like the 3rd New Towns, where pre-subscriptions are currently underway, and the 2·4 Plan focusing on urban supply," and said, "Especially by this week and next week, we will try to bring forward the announcement of pre-subscription portions for private housing in the 3rd New Towns and urban development under the 2·4 Plan."

However, Lee’s initial acknowledgment of real estate policy failures at the beginning of the meeting shifted somewhat later. When lawmakers from the People Power Party repeatedly pointed out the responsibility for rising real estate prices, Lee responded by emphasizing that this phenomenon is a global trend.

Lee stated, "Real estate is a market with a very long cycle, and although government efforts may have immediate effects, there are also effects that appear 5 or 6 years later," adding, "Since prices have been rising since 2015, this cycle will eventually decline. This is not unique to our country but a global phenomenon."

He also said, "What was the situation during the MB (Lee Myung-bak) and Park Geun-hye administrations? The real estate market was so depressed that they tried every possible way to revive it but failed," and added, "The current government tried to stabilize housing prices but did not succeed."

In response, People Power Party lawmaker Chu Kyung-ho criticized, "The real estate cycle may be 6 to 7 years, but policies should have been made with that cycle in mind," and asked, "Why did the 5-year Moon Jae-in administration not know this and fail to implement proper policies until now?" He continued, "Supply should have been provided earlier but was not, causing the current situation," and pointed out, "Reporting such (successful efforts) is what a competent government does."