The 31st Real Estate Market Inspection Meeting of Relevant Ministers
Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is delivering opening remarks at the 31st Real Estate Market Inspection Meeting of Related Ministers held at the Government Seoul Office in Jongno-gu, Seoul, on the 29th. Photo by Kim Hyun-min kimhyun81@
[Sejong=Asia Economy Reporter Son Sunhee] The government plans to designate '2·4 Plan Urban Complex Project Candidate Sites' as scheduled districts starting next month. Among the 56 candidate sites, the focus will be on areas that have met the resident consent requirement (more than two-thirds), such as Jeungsan 4 District, Yeonsinnae Station, Banghak Station, and the east side of Ssangmun Station. Subsequently, efforts will be accelerated to begin designating the main districts within the year.
Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presided over the '31st Real Estate Market Inspection Meeting of Related Ministers' on the 29th, stating, "We will promote the designation of scheduled districts from October after holding business briefings including detailed project structures, focusing on areas that meet the district designation requirements. Following this, we plan to start designating the main districts within the year after review by the Central Urban Planning Committee." He added, "The district designation process, which typically took 3 to 4 years for private projects, is expected to be drastically shortened to within one year."
He also said, "For the remaining candidate sites where resident consent is underway, we will encourage participation in the projects, and we plan to complete the review promptly for the 70 newly proposed private proposals and announce the candidate sites by the end of October." Additionally, he stated, "In October, we will conduct the second preliminary subscription for 10,000 housing units including Namyangju Wangsuk 2, and in November, we will proceed with additional preliminary subscriptions including private project volumes, putting all efforts into securing supply."
At the meeting, a review was conducted on the progress over the past six months regarding the real estate speculation eradication measures announced on March 29. Deputy Prime Minister Hong evaluated, "The rapid implementation of tasks such as the announcement of pre-investigation of new housing site speculation, strengthening acquisition and management of farmland, and abolition of special supply for employees of institutions relocated to Sejong City appears to have increased the sense of blocking speculation." He continued, "Starting in October, the registration of assets and restrictions on new real estate acquisitions by public officials related to real estate will be fully enforced, further strengthening integrity and fairness."
Regarding the crackdown on market-disturbing activities in the real estate market, he said, "The National Tax Service has focused on verifying suspicions such as disguised gifts, corporate fund outflows, and planned real estate through three rounds of investigations involving a total of 828 people." He added, "Investigations on 463 people (as of August 31) have been concluded, and approximately 110 billion KRW in evaded taxes will be recovered." The National Tax Service is continuing verification on the remaining 365 individuals.
Deputy Prime Minister Hong particularly noted, "The proportion of housing acquisitions by those under their 20s has recently increased significantly, and tax authorities are closely monitoring related trends such as disguised gifts." He said, "We plan to initiate additional tax investigations on 446 acquirers suspected of receiving acquisition funds through disguised gifts, who are young individuals lacking the capacity to prepare housing purchase funds." The results of related discussions will be separately announced by the National Tax Service.
Deputy Prime Minister Hong reiterated, "We will respond as strictly as possible to acts that hinder the normal market operation, such as real estate tax evasion and disguised gifts, through year-round and continuous operation of reporting centers, reinforcement of investigation and prosecution capabilities, and strengthening on-site crackdowns."
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