Won Hee-ryong "Aiming for Short-term Housing Price Stabilization... Improving Lease 3 Laws and Capital Gains Tax"(Comprehensive)

Minister of Land, Infrastructure and Transport Confirmation Hearing
"Lease 3 Laws Need Improvements Close to Abolition"
"Master Plan to Be Established Alongside 1st Generation New Town Special Act"
"Moon, Condemning Desire as Sin, Fought Market and Ended in Worst Failure"

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 responded to questions from lawmakers. 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. He particularly emphasized the need for fundamental revisions close to the abolition of the Lease 3 Acts (right to request contract renewal, rent ceiling system, and rent reporting system).

During the confirmation hearing held at the National Assembly that day, nominee Won emphasized the government's commitment to 'housing stability' and shared his views on easing and improving real estate regulations and supply measures to achieve this.

Regarding the current real estate market situation, nominee Won diagnosed, "At the time of regime change, due to banks cautiously watching retail finance amid rising interest rates, people are holding back as they observe whether to actually chase and buy along with the price increase trend as indicated by asking prices."

He added, "At times like this, unnecessary measures that stimulate prices in the short term should be postponed, and clear signals should be given to the market by showing consistent signals about the overall blueprint and direction, along with urgent supply measures and easing of capital gains tax surcharges."

Won Hee-ryong, the nominee for Minister of Land, Infrastructure and Transport, is delivering opening remarks at the confirmation hearing held at the National Assembly on the 2nd. Photo by Yoon Dong-joo doso7@

◆ "The ultimate goal is housing stability... Lease 3 Acts need improvements close to abolition"

First, in response to Justice Party lawmaker Shim Sang-jung's question about the 'new government's real estate policy goals,' nominee Won answered, "In the short term, downward stabilization of housing prices." He said, "To supply housing in the short term, we will quickly introduce policies that can have a positive effect on supply, such as accelerating ongoing urban redevelopment projects and postponing the capital gains tax surcharge on multi-homeowners for one year to encourage existing listings."

He also reaffirmed short-term supply plans through the revival and expansion of the registered private rental business system. Regarding private rental businesses, nominee Won said, "I think it is necessary to provide certain incentives to registered rental business operators to ensure housing is supplied through private rentals."

He added, "However, there have been cases where registered rental businesses were abused for other profit purposes by purchasing multiple houses, causing some policy confusion. Therefore, it is necessary to build the system foundation starting with construction rentals rather than purchase rentals, and prioritizing small-sized houses over large ones, which have less speculation risk."

Regarding the Lease 3 Acts, which will mark their second anniversary at the end of July, he stated, "I believe fundamental improvements close to abolition are necessary." Nominee Won said, "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, the ruling and opposition parties and the government can have sufficient discussions to create a good system. I will present in-depth measures."

On the Debt Service Ratio (DSR), nominee Won said, "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."

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@

◆ "Special law for first-generation new towns... Immediate master plan establishment"

In response to Democratic Party lawmaker Hong Ki-won's question about the redevelopment of first-generation new towns, nominee Won reaffirmed his intention to "promote it by creating a special law" and pledged, "We will immediately start establishing a master plan."

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

In response to People Power Party lawmaker Kim Sang-hoon's question about the need to boldly lift nationwide real estate regulation zones designated during the overheated real estate period, nominee Won replied, "We will review it carefully."

Regarding the 'Officially Announced Price Realization Roadmap' promoted by the Moon Jae-in administration, he asserted, "I believe that realizing it with the current official price calculation method and fair price reflection rate violates the principle of taxation by law. It must be completely overhauled."

◆ "Sin of demonizing public desire and fighting the market... The worst failure of Moon's real estate policy"

Nominee Won defined the Moon Jae-in administration's real estate policy as a "complete failure." He argued, "Moon's real estate policy fought against the market and demonized the very ordinary desires of the people and the middle class, resulting in the worst failure."

In response to Rep. Lee Jong-bae's question about the cause of the abnormal surge in housing prices over the past five years and the failure of real estate policies, nominee Won criticized, "The repeated failure was due to the wrong goal of trying to control housing prices in specific areas in the short term and reckless, unrealistic policies that directly controlled prices, but the results went in the opposite direction."

He emphasized, "No government in any country recklessly tries to directly control housing prices. The issue should focus on stabilizing and ensuring trust by removing obstacles since supply takes time, while demand should be released according to financial and income growth levels, concentrating on stabilizing affordable housing."

He added, "Rather than an arrogant approach that claims to control housing prices at once, we will focus on how to guide abnormal demand and supply, ultra-low interest rates, speculative psychology, and overheated expectations toward stability and trust."

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 responded to questions from lawmakers. Photo by Yoon Dong-joo doso7@

◆ "Government responsible for delay in improving mobility rights amid disabled subway protests"

Meanwhile, nominee Won briefly expressed his stance on the Dunchon Jugong incident and securing mobility rights for the disabled.

Regarding the suspension of reconstruction work at Dunchon Jugong in Gangdong-gu, Seoul (Olympic Park Foreon), he said, "The Ministry of Land, Infrastructure and Transport will closely monitor the situation from outside but will not intervene rashly."

Nominee Won said, "There are various opinions related to construction costs, and this issue is also connected to the price ceiling system. However, exemptions from safety inspections and the reconstruction excess profit recovery system could overly stimulate and confuse the reconstruction market if handled all at once, so we will approach it cautiously." He added, "We are carefully considering ways to ease the deadlock surrounding construction interests."

Regarding demands for mobility rights, such as protests by disabled groups boarding subways, he said, "Fundamentally, the government authorities bear the greatest responsibility for the delay in improving conditions that allow disabled people to move freely." Nominee Won added, "We will take a more active interest and effort in expanding mobility rights for the disabled and other transportation-vulnerable groups and will consult with related ministries."