[2021 National Audit] Hong Nam-ki on Daejang-dong Development: "There Is an Issue with Excessively Excessive Profits"

National Assembly Budget Committee and Ministry of Economy and Finance 'Economic and Fiscal Policy National Audit'

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is attending the National Assembly's Public Administration and Finance Committee's audit of the Ministry of Economy and Finance held at the National Assembly on the 5th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki said on the 5th regarding the allegations surrounding Hwacheon Daeyu's Daejang-dong development project, "Regardless of illegality or special favors, I think the development method that results in excessively excessive profits should be reconsidered."

On the same day, during the National Assembly Planning and Finance Committee's Ministry of Strategy and Finance economic and fiscal policy audit, when Basic Income Party lawmaker Yong Hye-in asked, citing excessive profit cases in the Daejang-dong development project, "Do you think real estate prices can be controlled and unearned income eliminated in this way?" he responded accordingly.

He said, "I think there is a problem when socially unacceptable excessive expected profits appear," adding, "Not all urban development projects nationwide are like that, and in the case of this (Daejang-dong) example, since investigations are underway as reported in the media, I will also observe the situation."

He continued, "In urban development projects, there are public developments and private developments. Public and private sectors must be properly balanced," adding, "If an appropriate profit is guaranteed in that process, it would be understandable, but if there are illegal factors that go beyond the legally defined framework, we must respond firmly."

When lawmaker Yong proposed suggestions related to real estate such as public housing with land lease and the introduction of land holding tax, Hong replied, "The public housing with land lease system was institutionalized earlier this year, so it can be applied to the 2.4 Plan project districts or the 3rd new town districts in the future, and since profit-sharing type and equity accumulation type housing have also been institutionalized, I expect their application to expand."

He said, "As for the land holding tax, since it involves creating a new budget item, I think it would be good to go through a public discussion process to gather public consensus."