[Post-Impeachment] Lost Housing Supply Policy... "National Assembly Must Show Responsibility for People's Livelihood"

Impeachment Crisis Halts National Assembly Discussions Including Abolition of Re-Chohwan Tax
Supply Plans Such as 1st Generation New Town Reconstruction Inevitably Disrupted
"Priority Processing of Livelihood Bills Needed to Alleviate Supply Concerns"

The passage of the impeachment motion against President Yoon Suk-yeol has cast a red light on the government's housing supply plans. With weakened policy momentum and the uncertain passage of related bills that require bipartisan agreement, experts emphasize that the National Assembly must take a responsible stance in processing these bills to ensure housing supply within urban areas.

Apartments in the Mapo-gu area of Seoul. Photo by Jinhyung Kang aymsdream@

Impeachment Swallows Up Shortening of Reconstruction Permit Period

According to the government and the National Assembly on the 15th, discussions in the National Assembly on housing supply-related bills such as the “Special Act on Promotion of Reconstruction and Redevelopment Projects,” the amendment to the “Act on Maintenance and Improvement of Urban Areas and Residential Environments,” and the abolition of the “Act on Excessive Profits from Reconstruction” have been indefinitely postponed.

A National Assembly Land, Infrastructure and Transport Committee official told Asia Economy, "All scheduled plenary sessions and bill review subcommittee meetings have been tentatively canceled," adding, "We need to observe the political situation and then reschedule through consultations between the ruling and opposition party floor leaders."

The Special Act on Promotion of Reconstruction and Redevelopment Projects aims to simultaneously process the basic plan and maintenance plan in the early stages of maintenance projects, and to establish the project implementation plan and management disposition plan simultaneously after the establishment of the association. The government planned to shorten the maintenance project period by up to three years through this act.

A Ministry of Land, Infrastructure and Transport official said, "There are no disagreements between the ruling and opposition parties on the content of the special act, but discussions are ongoing on whether to promote the related content as a special act or include it in the amendment to the ‘Act on Maintenance and Improvement of Urban Areas and Residential Environments.’ We expected no problems in pushing the bill after one or two committee reviews, but the political turmoil has disrupted the schedule."

The amendment to the “Act on Maintenance and Improvement of Urban Areas and Residential Environments,” which lowers the association establishment consent rate from the existing 75% to 70%, is in the same situation. This amendment was originally scheduled to pass through the Legislation and Judiciary Committee on the 9th and be submitted to the plenary session on the 10th. However, the plenary session was canceled due to the impeachment political situation, and after the impeachment-related plenary session on the 14th, no further plenary session has been scheduled. A Land, Infrastructure and Transport Committee official predicted, "Considering the time needed for bill subcommittee review and plenary session submission, physical passage within this year is uncertain."

The abolition of the “Act on Excessive Profits from Reconstruction” is also uncertain. A Ministry of Land, Infrastructure and Transport official said, "The bill to abolish the Act on Excessive Profits from Reconstruction requires further discussions between the ruling and opposition parties," adding, "More time will be needed as the National Assembly has not normalized due to the impeachment."

The implementation of the Special Act on Old Planned Cities for Reconstruction of 1st Phase New Towns, which has already passed the National Assembly, is also likely to face setbacks. Seo Jin-hyung, professor of Real Estate Law at Kwangwoon University, said, "Since the special act has already been passed with bipartisan agreement, it can proceed as planned, but the supply schedule may be delayed depending on the establishment of the new government."

On the 14th, the impeachment motion against the President (Yoon Seok-yeol) was presented at the 4th plenary session of the 419th National Assembly (extraordinary session) held at the National Assembly. Photo by Kim Hyun-min

The National Assembly Must Quickly Discuss Bills

Experts emphasize that amid growing confusion caused by the government’s political vacuum, the National Assembly must promptly discuss bills to prevent chaos in housing supply.

Kwon Dae-jung, professor of Real Estate at Sogang University Graduate School, said, "Since the real estate market is directly connected to the lives of the people, both ruling and opposition parties should prioritize passing livelihood bills without disagreements or confrontations by working together." He added, "The government also needs to consistently implement plans to increase housing supply regardless of political changes."

Kim In-man, director of Kim In-man Real Estate Economic Research Institute, said, "In a situation where the government is paralyzed, the National Assembly must show a responsible attitude," adding, "From the opposition party’s perspective, since the president has been impeached, there is no need to oppose just for the sake of opposition. They should follow the greater cause of alleviating concerns about housing supply."

Professor Seo suggested, "Measures to ease regulations such as the Act on Excessive Profits from Reconstruction and the price ceiling system for sale should be introduced at the National Assembly level to facilitate smooth reconstruction."