[Comprehensive] "We Will Erase the Stigma of the Rent-Seeking Republic"... Lee Jae-myung Announces 'Real Estate Reform'

"Corruption of Political Forces Colluding with Construction Interests Must Be Rooted Out"
Concrete Pledges Such as Development Profit Return System and Disclosure of Sale Cost Presented
'Basic Housing', 'Land Holding Tax'... Key Points of Lee Jae-myung's Real Estate Policy
"Should Even Public Officials Engage in Real Estate Speculation?" Announces High-Intensity Reform

Lee Jae-myung, Governor of Gyeonggi Province, who was elected as the 20th presidential candidate of the Democratic Party of Korea, is delivering his acceptance speech at the joint rally held at the SK Olympic Handball Gymnasium in Olympic Park, Songpa-gu, Seoul, on the afternoon of the 10th. / Photo by Yonhap News

[Asia Economy Reporter Lim Ju-hyung] "We will eliminate the stigma of being a rent-seeking republic through a powerful real estate reform."

On the 10th, Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, said this in his acceptance speech. In his speech that day, 'real estate reform' occupied a significant portion. He emphasized, "I will definitely root out the corruption of political forces colluding with construction capital," and also presented specific pledges.

This is not the first time Candidate Lee has emphasized real estate policy. Even before being selected as the presidential candidate, he had considered real estate reform as a top priority policy along with the 'Basic Series.'

◆ Among the 4,200-character speech, 300 characters were about real estate: "Full recovery of illegal development profits"

In his acceptance speech at the joint rally held at the SK Handball Stadium in Olympic Park, Songpa-gu, Seoul, Candidate Lee opened by saying, "The Republic of Korea is a democratic republic," and "Since the owner of the country is the people, the reason for politics to exist must be the better life of the people."

Out of the approximately 4,200 characters in the acceptance speech, about 300 characters were devoted to real estate policy. Candidate Lee said, "I will not delay even for a moment. I will carry out a strong real estate reform immediately upon election," and presented specific pledges such as △ full return of development profits to the people △ disclosure of construction and sale costs.

Regarding the preferential treatment allegations related to the Daejang-dong development in Seongnam, Gyeonggi Province, he labeled it as the "People Power Party Hwacheon Daeyu Gate," and emphasized, "If illegal acts such as bribery are detected during the project process, we will recover all development profits afterward to completely root out unjust rent-seeking income from the hands of a few vested interests."

◆ Basic Housing and Land Holding Tax... The Core of 'Lee Jae-myung's Real Estate Reform'

Candidate Lee has put great effort into real estate policy since he ran as a Democratic Party presidential candidate in August. His representative pledges are the so-called 'Basic Housing' and 'Land Holding Tax.'

Candidate Lee is bowing in greeting before delivering his acceptance speech. / Photo by Yonhap News

Basic Housing refers to a new type of public housing that allows anyone without a home, including the middle class, to live in high-quality housing for more than 30 years by paying only affordable rent at construction cost level. Previously, Candidate Lee promised to supply a total of more than 2.5 million housing units during his term, including 1 million Basic Housing units.

The 'Land Holding Tax,' aimed at preventing real estate speculation and alleviating income polarization, is also a core policy of Lee Jae-myung's real estate reform. In a press conference last August, Candidate Lee explained about the Land Holding Tax, "To stop ruinous real estate speculation, we need to reduce the land transaction tax and increase the effective holding tax, which is only 0.17%, to around 1%," adding, "The comprehensive real estate tax or property tax on land will not be double-taxed with the Land Holding Tax. Nearly 90% of households, including the majority of ordinary people with one house, except for a very small number of high-priced houses, will receive net benefits."

◆ "If even public officials blindly follow, the country will perish" - Announcement of strong reforms

As part of measures to eradicate real estate speculation, Candidate Lee also proposed bold policies such as 'prohibition of housing rental business by high-ranking public officials.'

In a post titled 'Prohibition of Housing Rental Business by High-ranking Public Officials... Seeking Opinions' on his Facebook earlier this year, he said, "Real estate prices do not rise by themselves but because roads, railways, and industrial complexes are built nearby and permits become more valuable," and asked, "Should we allow even high-ranking public officials to engage in real estate speculation?"

In March, when allegations of land speculation by employees of the Korea Land and Housing Corporation (LH) regarding new towns surfaced, he strongly criticized, saying, "The public is outraged because public officials entrusted with the people's authority alone enjoyed speculative profits," and "If public officials, who have the duty to maintain fairness, join in self-interest or the tyranny of the strong, the country will perish."