Won Hee-ryong "First-phase New Towns, Promise with Ministerial Post at Stake"... To Kim Dong-yeon "Don't Do Politics Like That" (Comprehensive)

"Immediate Expansion and Reorganization of 1st New Town Redevelopment TF... Proceed Without Delay"
Criticism to Gyeonggi Governor Kim Dong-yeon: "Don't Do Politics Like That"
"House Prices, It's Better Not to Expect Short-Term Rise... Downward Stabilization"

Won Hee-ryong, Minister of Land, Infrastructure and Transport

Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated on the 23rd, "We will immediately expand and reorganize the Task Force (TF) currently operating for the redevelopment of the 1st generation new towns." He announced plans to commission a research project next month to establish a master plan for the redevelopment of the 1st generation new towns, and to appoint dedicated master planners (MPs) for each of the five 1st generation new towns to support their transformation into premium new towns.

◆ "Immediate Expansion and Reorganization of the 1st Generation New Town Redevelopment TF... Proceeding Without Delay"= Minister Won met with reporters at the Government Complex Sejong on the same day and said, "I publicly promise, putting my ministerial position on the line, that there will be no delays or setbacks in the redevelopment schedule of the 1st generation new towns due to the Ministry of Land, Infrastructure and Transport."

In response to concerns that the redevelopment plans for the 1st generation new towns such as Bundang, Sanbon, Ilsan, Jungdong, and Pyeongchon might be delayed more than expected, he reiterated, "We will proceed as quickly as possible."

The government announced the ‘8.16 Real Estate Measures’ on the 16th, which included plans to establish a master plan for the redevelopment of the 1st generation new towns by 2024. The plan to supply 2.7 million housing units over five years stated that the redevelopment of the 1st generation new towns in the metropolitan area would be carried out by establishing a redevelopment master plan at the level of urban re-creation through research projects in the second half of this year.

However, there was strong backlash that this was insufficient compared to President Yoon Seok-yeol’s campaign promise made in January, when he was a presidential candidate, to increase floor area ratios and ease regulations in the 1st generation new towns.

Minister Won emphasized, "There is no change in the plan to push forward the redevelopment of the 1st generation new towns as quickly as possible," adding, "The goal is to first create measures and foundations to rebirth the 1st generation new towns as premium cities."

He said, "There are as many as 300,000 housing units in the 1st generation new towns alone," and warned, "If thorough relocation measures are not established, problems such as a surge in jeonse (long-term lease) prices will inevitably occur." He added, "It’s not just about rebuilding structures; we need to consider how to expand urban infrastructure in the currently densely built new towns and how to provide real benefits to residents in the future."

Minister Won also stressed that the schedule for establishing the master plan for the redevelopment of the 1st generation new towns is being pushed forward unusually quickly to ensure the prompt implementation of campaign promises and national tasks. He said, "Considering that the redevelopment of the Yongsan Station area took 50 months and the planning of the 3rd generation new towns took 36 months, presenting the master plan for the 1st generation new towns within next year is a very fast schedule."

He added, "We intend to proceed with the project while gaining trust and support from residents, local governments, and the National Assembly," and said, "The commissioning of the master plan research will be carried out within September, and the task instructions are already being prepared." He also previewed, "After coordinating schedules with the mayors of the five new towns, we will hold a council meeting as soon as possible."

Minister of Land, Infrastructure and Transport Won Hee-ryong is announcing the Yoon Seok-yeol administration's first housing supply plan on the 16th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

◆ Sharp Criticism to Gyeonggi Province Governor Kim Dong-yeon: "Don’t Do Politics Like That"= On the same day, Minister Won strongly rebutted Gyeonggi Province Governor Kim Dong-yeon of the Democratic Party, who on the 19th labeled the 8.16 measures as a "breach of presidential campaign promises."

Governor Kim had earlier stated on his Facebook on the 19th that the government’s announcement to establish a master plan for the redevelopment of the 1st generation new towns by 2024 was "a de facto breach of presidential campaign promises," and declared, "Gyeonggi Province will do what it can independently of the government."

In response, Minister Won said, "Most of the authority related to new town redevelopment lies with the mayors of the respective local governments; the Gyeonggi Province governor has no authority whatsoever," adding, "It is irresponsible for a politician to exploit the dissatisfaction of some residents and create confusion by saying ‘Gyeonggi Province will handle it.’"

He continued, "Don’t seek shallow political gains through political remarks when you have no authority and cannot take responsibility. Don’t do politics like that," and said, "Going forward, the five mayors of the 1st generation new towns and the Ministry of Land, Infrastructure and Transport will take responsibility and communicate with residents as we proceed with redevelopment, so I hope for cooperation."

◆ Won Hee-ryong: "It’s Better Not to Expect Short-Term Housing Price Increases"= Meanwhile, marking his 100th day in office on the 23rd, Minister Won said, "Because housing prices surged to a level that is unbearable for the public in a short period, I have been considering how to stabilize housing," and pledged to prioritize the public’s 'housing stability' going forward.

He said, "Rather than swaying the market with surprise policies, we will create a market environment that is predictable and functions normally under consistent principles and directions over the next five years." Regarding the government’s policy achievements so far, he self-assessed, "Considering the stabilization of the rental market and the downward trend in sales prices, I think we have done reasonably well."

Regarding recent market trends such as the transaction freeze and the downward trend in sales prices, he predicted that these trends would continue. He said, "Currently, housing sales prices are generally declining, and considering how much prices had risen, I believe the majority of the public still hopes for a continued downward stabilization," adding, "If there is any hope for short-term price increases, it is better not to expect much."

He said the focus will now be on the implementation and concrete realization of the 8.16 measures announced on the 16th. He said, "We have presented the big picture of supplying 2.7 million housing units, and we will continue to disclose detailed plans and concrete implementation measures."

Regarding the reconstruction excess profit recovery system, which has attracted significant market attention, he said, "We will present specific adjustment plans in September." He added, "We will also review the standards for reconstruction safety inspections within the year after consultations with local governments." Furthermore, he said, "We will prepare support measures for youth housing and aim to conduct early subscription within the year."