Housing Industry "Pushed to the Limit," Proposes Unsold Housing Measures to Ruling Party

The Korea Housing Builders Association announced on the 11th that it held a policy meeting with members of the National Assembly Land, Infrastructure and Transport Committee affiliated with the People Power Party at the Housing Construction Hall in Yeouido.

Attendees included Kwon Young-jin, the ruling party's floor leader of the Land Committee, as well as members Kim Do-eup, Jeong Jeom-sik, Kim Jeong-jae, and Seo Beom-su. From the industry side, Chairman Jeong Won-ju of the Housing Builders Association, the association's executive board, and heads of city and provincial associations participated. A total of 22 proposals were made, including 8 legislative matters under the Land Committee, 7 improvements related to subordinate laws and affiliated organizations, and 7 cooperation matters under other committees.

They proposed activating integrated deliberations on the Housing Act and regularizing the increase of standard construction costs. They requested improvements on various legislative issues and matters under the Ministry of Land, Infrastructure and Transport’s jurisdiction, such as allowing early sale conversion of private rental housing, extending support from the Housing and Urban Fund for corporate rental businesses, and improving the commercial ratio of mixed-use residential and commercial buildings in commercial areas.

Jeon Won-ju, President of the Korea Housing Construction Association (sixth from the right), Kwon Young-jin, member of the People Power Party, and others are taking a commemorative photo after a meeting on the 11th. Photo by the Housing Construction Association

Measures to address the increase in unsold housing, especially in local areas, were also requested. They suggested temporarily reducing capital gains tax when acquiring unsold houses or excluding unsold houses acquired after local completion from the housing count, thereby extending the application period and expanding the scope of tax benefits. They also emphasized the need to adjust the purchase price of unsold houses by Korea Land and Housing Corporation (LH) after completion to reflect reality and increase the volume. They proposed allowing a 5-year rental conversion of unsold apartments.

The attending lawmakers expressed their intention to closely consult with relevant ministries while seeking improvement measures, according to the Housing Builders Association. Chairman Jeong Won-ju said, "The housing industry is pushed to its limits due to soaring construction and labor costs, a high-interest rate environment, and an increase in unsold houses," adding, "Comprehensive measures for unsold housing, including tax support such as capital gains tax reductions and exemption from acquisition tax surcharges, are urgently needed."