[Sejong=Asia Economy Reporter Kim Hyunjung] The Seoul Institute for Social Economy Studies (SIES), a progressive economic think tank, will hold a public forum next week that strongly criticizes the Moon Jae-in administration's real estate policies. In particular, it diagnoses the current real estate market situation as a dilemma-like "maze," pointing out that the government's real estate policies have not only failed to produce results but also cannot be canceled or reversed at this point. Since this institute is mainly composed of the Hakhyun School, which has been credited with laying the foundation for income-led growth and providing the Moon administration with its economic roots, some view this as a voice of self-reflection.
According to SIES on the 20th, the institute and the Korea Economic Development Association will jointly hold a symposium titled "Where Should Real Estate Policy Go?" on the 29th at the Francisco Education Center in Jung-gu, Seoul.
Kang Cheol-gyu, director of SIES, explained the background of holding this forum, saying, "We need to look back on the characteristics of the Korean real estate market and the outcomes of real estate policies to seek new policy directions." Director Kang emphasized, "Numerous real estate measures have been implemented, but the market has yet to stabilize. It is neither easy to cancel past policies nor to supplement them, so the problem feels like it has fallen into a maze. We need to rethink from the starting point." He added, "Housing prices and monthly rents have skyrocketed across apartments and villas, plunging housing issues into great chaos. Real estate frenzies such as 'debt investment' and 'all-in borrowing' have triggered financial instability, and wealth inequality has worsened to the point where diligent wage earners have lost their motivation to work," criticizing the situation.
The forum will be divided into three sessions, discussing the current market and policy diagnosis, directions for real estate policy reform, followed by a comprehensive discussion. In particular, in the session related to policy reform directions, Professor Jeong Junho of Kangwon National University will point out issues with the current official price system, and Research Fellow Lee Seonhwa of the National Assembly Future Institute will criticize the limitations of regulating multi-homeowners through holding taxes such as the comprehensive real estate tax, mentioning issues of tax efficiency and equity.
Professor Jeon Gang-su of Daegu Catholic University will argue for reforming related tax systems by strengthening holding taxes compared to the current system while easing capital gains tax and acquisition tax. Professors Kwon Se-hoon of Sangmyung University and Han Sang-beom of Kyonggi University will propose reforms to the public rental housing system, and Professor Na Won-jun of Kyungpook National University will present measures to manage financial imbalances and household sector soundness.
Director Kang stressed, "The government must seek policies that play a public role while not going against the market," emphasizing, "Systematic and comprehensive policies that fully consider harmony among policies, their multifaceted effects, and side effects must be prepared."
This forum is particularly notable for being sponsored by the National Economic Advisory Council, a presidential advisory body. The National Economic Advisory Council is chaired by the president, and currently, Professor Lee Geun, a distinguished professor in the Department of Economics at Seoul National University, serves as vice-chair.
This is not the first time SIES has criticized the current government. Following its sharp stance against minimum wage increases and real estate regulations in May, it hosted a monthly discussion in July criticizing the current direction of holding tax reforms and accusing the government of pushing policies recklessly without considering market acceptance.
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