[Full Text] Lee Jae-myung: "30% of 3.11 million houses prioritized for homeless youth... All near Yongsan Park to be 'Youth Basic Housing' · LTV up to 90%"

Lee Jae-myung's Real Estate Pledge on the 23rd: "Total Supply of 1.07 Million Houses in Seoul"
"Mass Supply of Half-Price Apartments... Up to 90% LTV for First-Time Homebuyers"

[Asia Economy Reporter Oh Ju-yeon] Lee Jae-myung, the Democratic Party of Korea's presidential candidate, announced on the 23rd a plan to supply a total of 3.11 million housing units nationwide, pledging to prioritize 30% of these units for young people without homes. In particular, he stated that all housing near Yongsan Park will be supplied as youth basic housing.

On the morning of the same day, Lee held a press conference at the Poil Eoullim Center in Uiwang-si, Gyeonggi Province, where he announced real estate pledges containing these details. Lee increased the supply plan from 2.5 million units announced during the party primary in August to 3.11 million units, aiming to capture real estate votes. Notably, the allocation of supply volume and easing of real estate regulations are focused on the youth demographic.

Below is the full text.

[Image source=Yonhap News]

Realizing the dream of owning a home with the supply of 3.11 million housing units,

Lee Jae-myung will make it happen!

It is the responsibility of politics to create a life without worries for the people,

yet we have caused suffering to the public due to housing problems.

The market, believing the government ignored signals of supply shortage,

responded with an unprecedented surge in housing prices.

Those without homes, including youth,

felt despair that owning a home is impossible even after a lifetime of work,

leading to panic buying.

This is an undeniable policy failure.

As a member of the Democratic Party and a presidential candidate,

I bow my head in apology once again.

I will take full responsibility without excuses.

The Lee Jae-myung administration will respect the dreams of the people and market demands.

We will supply the necessary housing sufficiently and swiftly.

We will help the homeless realize their dream of owning a home,

and also ensure homeowners can easily move to better housing,

firmly establishing a housing ladder.

To strengthen the housing ladder,

we will mobilize all possible policy tools such as tax, financial, fiscal support policies, and rationalization of transaction regulations.

We will thoroughly examine the causes of housing price surges,

completely reorganize real estate policies,

and stabilize the real estate market, especially the housing market.

I, Lee Jae-myung, with an average pledge fulfillment rate of 95%,

will ensure with my ‘can-do’ drive

that the public no longer suffers from housing problems.

First, we will promptly supply a total of 3.11 million housing units nationwide.

So far, the government has announced a supply plan of about 2.06 million units.

The Lee Jae-myung administration will add

1.05 million units including 480,000 in Seoul, 280,000 in Gyeonggi and Incheon, and 290,000 in other regions, totaling 3.11 million units.

First, in Seoul, we will supply a total of 1.07 million units by adding 480,000 units to the existing plan of 590,000 units.

Among these, housing supplied on public land will total 400,000 units, combining the existing 120,000 units and 280,000 new units.

New public land supply includes 80,000 units out of 200,000 units around Gimpo Airport (airport retention zone),

100,000 units on some sites near Yongsan Park and surrounding returned land,

20,000 units on national and public land such as Taereung, Hongneung, and Changdong, and 80,000 units through the undergrounding of Line 1.

Supply through redevelopment of existing land includes 210,000 units from the existing plan, plus 100,000 units added through easing redevelopment, reconstruction, and remodeling regulations, and 100,000 units from reconstruction of old permanent rental complexes, totaling 410,000 units.

In Gyeonggi Province and Incheon, we will supply 1.51 million units by adding 280,000 units to the existing plan of 1.23 million units.

Among these, housing supplied on public land will total 1.11 million units, combining the existing 910,000 units and 200,000 new units.

New public land supply includes 120,000 units out of 200,000 units around Gimpo Airport (airport retention zone),

and 80,000 units through the undergrounding of the Gyeongin Line.

Supply through redevelopment of existing land includes 200,000 units from the existing plan, plus 80,000 units added through new town reconstruction and remodeling regulation easing, totaling 280,000 units.

In other regions, we will supply a total of 530,000 units by adding 290,000 units to the existing plan of 240,000 units.

Second, we will drastically reduce housing supply prices to half.

The standard for public housing land supply prices changed from construction cost during the Park Geun-hye administration to appraisal prices,

linking land prices to surrounding housing prices and raising prices even for public sale housing.

Going forward, we will revert the public land supply price standard to construction cost,

introduce a system for disclosing sales costs, and apply a price ceiling system,

massively supplying ‘half-price apartments’ at about half the market price nearby.

Through continuous mass supply of affordable sale housing,

we will help the homeless realize their dream of owning a home

and stabilize the housing market.

Third, we will supply various customized housing that matches individual preferences and affordability.

Housing that meets the preferences and affordability of the homeless and actual demanders must be supplied,

and people should be able to upgrade their housing when possible.

On public land, we will supply sale housing and public housing in a balanced and diverse manner.

For sale housing, besides general sale types,

we will offer various types such as building sale type (land lease), equity accumulation type,

‘Anyone’s House’ type (purchase after lease at initially fixed sale price),

and profit-sharing type (profits distributed according to shares upon sale),

to enable choice among diverse housing types for low-income and young people with limited funds.

Besides sale types, if middle-class people desire,

we will sufficiently supply public rental housing (basic housing or lifelong housing),

social housing (cooperative type), and shared housing.

Fourth, we will realize the dream of homeownership for youth.

We will expand the housing supply base so that the homeless, including youth, can win at least once in their lifetime.

Due to the complacency of older generations leaving unfairness and polarization unchecked,

innocent youth bear all the pain from low growth and lack of opportunities.

For youth in difficult situations due to the responsibility of older generations,

we will greatly expand new supply and prioritize 30% of supply volume for homeless youth.

In particular, all housing near Yongsan Park will be supplied as youth basic housing.

Fifth, we will ease financial restrictions and drastically reduce transaction tax burdens for first-time homebuyers including youth.

For first-time homebuyers,

considering region, area, and price, we will ease financial regulations significantly, allowing up to 90% LTV, making homeownership easier.

Also, acquisition tax will be exempted for homes under 300 million KRW,

and halved for homes under 600 million KRW.

Dear citizens!

The Lee Jae-myung administration will completely resolve housing worries for youth, the homeless, and actual demanders.

Respecting the voices of the people and the market regarding housing issues,

we will provide practical and realistic solutions

so that the public can immediately feel the effects of real estate policies.

We will create a Korea where all citizens achieve their dream of owning a home

and enjoy housing stability and basic housing rights.

3.11 million housing units, forward!

The dream of owning a home, properly!

Lee Jae-myung will make it happen!

Thank you.