Mayor Forced into Position... 'Normalization' as Top Priority

Real Estate Policies of Chu-Won Seen Through Keywords
Artificial Demand Suppression Distorts Market
'Regulation Easing' Matching Public Expectations
Stepwise 'Housing Price Stabilization' Reemphasized

The real estate policy direction put forward by the first economic team of the Yoon Suk-yeol administration can be summarized as ‘market normalization.’ It starts from the awareness that forced demand suppression caused market distortion. However, as housing prices showed signs of rising again due to expectations of deregulation after the presidential election, messages aimed at tempering this have also been emphasized. The market normalization that the Yoon Suk-yeol administration aims for is not simply a state where transactions are smooth and free but also sends a signal to the market that it includes ‘stabilization’ without abrupt price fluctuations. In summary, the real estate policy of the dual leadership of Choo Kyung-ho and Won Hee-ryong amounts to ‘deregulation’ that meets the public’s expectations and ‘housing price stabilization’ through speed control.

On the 11th, Won Hee-ryong, the nominee for Minister of Land, Infrastructure and Transport, declared upon his first day at the Gwacheon Government Complex in Gyeonggi Province, "I will not take an arrogant and unrealistic approach that claims housing prices can be controlled at once or that the market can be suppressed by a few government policy measures." While directly criticizing the anti-market regulatory policies poured out by the current administration under the pretext of curbing speculation, he also made it clear that deregulation to improve these policies does not mean creating ‘conditions favorable for speculation.’

Won said, "I will be cautious not only about excessive deregulation or parts that could be misused as wrong signals in the market but also move delicately and carefully in a direction that can be managed and controlled." He also reiterated, "There is no deregulation or supply that could lead to wrong price signals in the future vision of the Yoon Suk-yeol administration. We will present realistic supply measures that are predictable and tailored to the precise composition of actual demand."

Chu Kyung-ho, a member of the People Power Party and the first Deputy Prime Minister and Minister of Economy and Finance nominee under the Yoon Suk-yeol administration, is arriving at the confirmation hearing preparation office set up at the Korea Deposit Insurance Corporation in Jung-gu, Seoul, on the 11th. Photo by Moon Ho-nam munonam@

This aligns with the idea emphasized by Choo Kyung-ho, the nominee for Deputy Prime Minister and Minister of Economy and Finance, who said at a press briefing the day before, "If the real estate market normalization policy proceeds too rapidly, it could cause other side effects," adding, "We will proceed step by step while paying attention to such aspects." Both nominees clearly indicated that they will engage in ‘speed control’ considering the risk of side effects arising from a rapid market normalization process.