Won Hee-ryong: "Short-term goal of housing price stabilization... Easing of Lease 3 Laws and Capital Gains Tax"

Minister of Land, Infrastructure and Transport Nominee Confirmation Hearing

On the 2nd, Won Hee-ryong, the nominee for Minister of Land, Infrastructure and Transport, attended the confirmation hearing held at the National Assembly and took the witness oath. Photo by Yoon Dong-joo doso7@

Won Hee-ryong, the nominee for Minister of Land, Infrastructure and Transport, stated on the 2nd that his goal is to stabilize housing prices downward in the short term and that he intends to ease various regulations to achieve this.

At the confirmation hearing held at the National Assembly on the same day, in response to a question from Sim Sang-jung of the Justice Party asking about the "new government's real estate policy goals," Won replied, "In the short term, it is the downward stabilization of housing prices."

Won added, "To supply housing in a short period, we will expedite ongoing urban redevelopment projects and introduce policies that can have a positive effect on supply, such as a one-year suspension of the capital gains tax surcharge on multi-homeowners to encourage existing properties to come onto the market, as soon as possible."

He continued, "We will normalize the market by harmonizing supply and demand, and to curb the rapidly rising housing prices in the short term, we will ease excessive taxes and official land price burdens that place a heavy load on the public."

Regarding the Debt Service Ratio (DSR), Won emphasized, "DSR was introduced last year and should be continuously strengthened. However, we need to consider easing measures for certain groups, especially young people whose future income is underestimated."

He also commented on the 'Lease 3 Acts,' which will mark its second anniversary at the end of July, saying, "I believe fundamental improvements close to abolition are necessary."

Won stated, "It is not that we do not protect tenants, but we have a plan to protect them better. The previous legislative discussions were insufficient, but if a task force (TF) is formed in the National Assembly's Land, Infrastructure and Transport Committee, I believe the ruling and opposition parties and the government can have thorough discussions and create a good system. I will present in-depth measures."

Regarding recent confusion within the Presidential Transition Committee over real estate policies such as easing reconstruction regulations in the first-generation new towns, he said, "The confusion arose because individual members' remarks in the real estate TF were not filtered. There was a momentary confusion due to ideas where authority and responsibility did not align, but we will organize it."

Meanwhile, allegations surrounding Won, including the 'Jeju Odeungbong Project,' were raised mainly by Democratic Party lawmakers. As soon as the hearing began, Democratic lawmakers criticized Won for his unfaithful submission of materials for about 40 minutes and even mentioned the possibility of 'accusation.'

In the subsequent main questioning, Democratic lawmakers pressed Won on suspicions related to the Odeungbong Park private special case project promoted during his tenure as governor, misuse of business promotion expenses, and violations of the Kim Young-ran Act (Anti-Graft Act).

Assemblyman Kim Gyo-heung pointed out that the private operator's profit rate in the Odeungbong development project was designed at 8.91% of the total project cost, saying, "Before tax, it is 9.88%, which is unreasonably high compared to other projects that are usually 4 to 6%. Also, public officials related to the Odeungbong project were later employed by consortia, etc."

Assemblyman Moon Jin-seok also severely criticized, "The Odeungbong Park development was led by Won's close associates, with acquaintances and neighbors forming a scrum to exploit it," and pointed out suspicions related to changes in the department overseeing the park project within the provincial office.