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"Well, is it right to protect tenants living in Apgujeong-dong, Gangnam-gu, Seoul as well?"

On the 4th, at the Sejong office of the Korea Research Institute for Human Settlements (KRHIS), Director Shim Gyo-eon said, "Our country's policies tend to target all housing. Especially during the previous administration, they were uniform," adding that about 40% of tenants need protection. However, applying the Lease Protection Act equally to all tenants is not an appropriate policy. Director Shim warned, "It's the same as the land transaction permit system where the state authorizes buying and selling houses," and cautioned, "Government intervention in the market through regulations is like a drug."

Shim Gyo-eon, President of the Korea Research Institute for Human Settlements, is being interviewed by Asia Economy on the 4th. / Photo by Korea Research Institute for Human Settlements

Regarding the government's housing policy, he evaluated that "the emphasis on redevelopment rather than new development is the right direction." However, since rising construction costs make project progress difficult in many areas, he suggested, "There is a need to temporarily adjust public contributions." Public contributions refer to using real estate development profits to enhance community public benefits. They take various forms such as rental housing or cash. They are often mixed without distinction with donations in kind, where developers transfer infrastructure and public facilities like roads and parks free of charge to the state or local governments for permits. However, unlike donations in kind, public contributions lack clear legal standards and vary by region. Director Shim said, "Since prices cannot keep rising, public contributions should be flexibly applied by region until the market normalizes," adding, "Of course, there is no need to adjust in areas where projects are doing well."

He viewed the lifting of the Greenbelt (GB) as essential for stabilizing housing prices. However, since it involves using future resources for the younger generation, he urged careful planning with environmental values in mind. Director Shim said, "No government should hastily implement policies," noting, "In the past, grace periods were given, but nowadays it seems policies are applied immediately without time to adapt." He added, "It should be done step-by-step, not all at once," and remarked, "Even with Innovation Cities, it would have been much better to pilot in one or two local areas first, then improve and expand later."

Director Shim marked his first anniversary in office on the 28th of last month. Having come from a university professorship to a government-funded research institute, he said he feels the weight of fairness and equity greatly. Reflecting on his experience, he said with a smile, "Communication such as listening to the private sector and reflecting it in research seems to have become ingrained," and "Internally, we have team meals about three times a week, and they tell me I spend too much time just at the institute." He further explained, "While we should avoid 'doing everything at once' in policy making and execution, the public also needs to be patient."

In the era of aging and low birth rates, the role of KRHIS is expected to grow. Established in 1978 to contribute to 'balanced national development and improvement of citizens' quality of life,' Director Shim analyzed, "Changing the environment from childhood is very difficult. Half of the population is born in the Seoul metropolitan area; would they move to local areas?" He emphasized the need to consider "how young people can settle in local areas from birth." He added, "Of course, good universities are necessary, and when companies move to local areas, instead of corporate tax benefits, subsidies per employee should be provided." He argued that such bold measures are required.

He stressed that KRHIS is improving its structure to proactively conduct research that the public can feel as a national policy research institute. KRHIS undertakes over 200 projects annually. Director Shim said, "Since taking office, I have tried to create an atmosphere where researchers do not fall into routine," explaining, "I encouraged intellectuals to conduct research that reaches the public, not research that satisfies only themselves and is unseen by anyone."