"Serious Non-Capital Region Unsold Housing Crisis... Time to Boldly Ease DSR Loan Regulations"

Kim: "Government Measures Are Extremely Complacent and Makeshift"
Even Temporary Real Estate Tax Reforms Should Be Considered

Kim Sang-hoon, the Policy Committee Chairman of the People Power Party, stated on the 11th, "It is time to boldly ease the total debt service ratio (DSR) loan regulations to resolve the unsold housing crisis in non-metropolitan areas."

Chairman Kim made this remark during the People Power Party's floor strategy meeting held at the National Assembly that morning, urging, "The Ministry of Land, Infrastructure and Transport and the Financial Services Commission, among other related ministries, should not be preoccupied with self-preservation given the severe situation in the construction industry."

Yonhap News

Chairman Kim expressed concern, saying, "The construction industry is a key sector accounting for 15% of the Gross Domestic Product (GDP). Construction companies are going bankrupt one after another, the number of court receivership applications is rapidly increasing, and along with this, jobs in the construction sector are sharply declining."

Regarding the current government measures, he criticized, "The government's measures are very complacent and makeshift. There have been continuous criticisms on the ground about the lack of practicality, such as the Korea Land and Housing Corporation (LH) directly purchasing below the sale price, the limited allowance of unsold apartments after local completion for purchase-type registered rental housing, and support for the launch of CR REITs (corporate restructuring real estate investment trusts) in the first half of the year."

Chairman Kim particularly emphasized, "I believe the government should boldly consider even temporary measures for real estate tax reform in non-metropolitan areas. Given the current situation, heads of various ministries may be cautious and worried about potential risks that could lead to personal or departmental responsibility, but more decisive measures and implementation are necessary."