Yoon Administration Draws Blueprint for Supplying 2.5 Million Houses with Private Experts

On the 29th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, held the first meeting of the Housing Supply Innovation Committee, composed of 15 private experts. (Photo by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Ryu Tae-min] The government has formed a Housing Supply Innovation Committee composed of private experts to accelerate the pace of housing supply measures. This is the first time since the government’s inception that it has drawn up a blueprint for housing supply plans together with private experts.

The Ministry of Land, Infrastructure and Transport (MOLIT) established the Housing Supply Innovation Committee and held a kickoff meeting on the 29th. The committee consists of 15 private experts. Based on the committee’s opinions, MOLIT also formed a ‘Housing Supply Task Force (TF)’ to develop policy alternatives and a ‘working organization’ to serve as the secretariat.

The Housing Supply TF is led by the first vice minister of MOLIT and is divided into three subcommittees: public land, urban supply, and private redevelopment projects. It plans to work closely with the Innovation Committee to establish supply plans without any setbacks. The Innovation Committee includes academic figures such as Professor Shim Gyo-eon of Konkuk University’s Department of Real Estate, who previously served as the head of the real estate TF at the Presidential Transition Committee, Professor Kwon Dae-jung of Myongji University, Professor Lee Yong-man of Hansung University, and Kim Deok-rye, Director of Housing Policy at the Korea Housing Industry Research Institute. It also includes construction industry figures such as Park Jae-hong, President of the Korea Housing Builders Association, Choi Kwang-ho, Senior Vice President of the Korea Housing Association, and Kim Seung-bae, President of the Korea Real Estate Development Association.

At the meeting, the Innovation Committee discussed the limitations of past housing supply policies and the direction of the new government’s housing supply policies. In particular, it was pointed out that although the government has strived to stabilize housing prices despite difficult macroeconomic conditions, its demand-suppression-centered policies have failed to meet the supply demand desired by the public. Additionally, limitations were noted in terms of supply timing, location, actors, and supply types.

MOLIT plans to adopt the Innovation Committee’s opinions and set the new government’s supply policy direction based on ▲improving residential quality ▲harmonizing the functions and roles of the private sector and government ▲and the new government’s supply policy direction.

Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated, “With the attitude that there are no sacred cows in supply, we will review the entire supply process from scratch through the ‘Housing Supply Innovation Committee’ and remove unnecessary regulations.” He added, “Our top priority is not the narrow goal of stabilizing housing prices, but ‘residential stability for the people’ through expanding housing supply and normalizing market functions.” Minister Won also said, “We will prepare supply plans by location, type, and timing, as well as concrete execution plans in the shortest possible time, so that the public can know when, where, and how the housing they want will be supplied.”