Housing Industry Meets Democratic Party: "Tax Cuts and Lower Interest Rates Needed to Revitalize Housing Market"

Jung Wonju, president of the Korea Housing Construction Association, along with the heads of city and provincial branches, met with Maeng Sungkyu, chairman of the National Assembly Land, Infrastructure and Transport Committee, and other members of the Democratic Party at the National Assembly Members' Office Building on the 30th of last month to propose policies related to the housing market.

They requested temporary capital gains tax reductions or the exclusion of acquisition tax surcharges for the purchase of unsold homes, as well as the reintroduction of the apartment purchase and lease registration system. They also emphasized the need for support measures to address the issue of unsold housing units, such as easing lending regulations, lowering interest rates, and improving the conversion of group interim loans to final payment loans.

In addition, they argued for another round of measures to improve the commercial ratio of mixed-use buildings in commercial areas and to extend support from the Housing and Urban Fund to corporate rental housing operators. They also saw the need to allow early conversion to sale for privately built rental housing, provide emergency support to normalize real estate project financing (PF), make appraisal values recognized by the Housing and Urban Guarantee Corporation more realistic, and improve the Korea Land and Housing Corporation’s purchase-lease system.

Jung Wonju, president of the Korea Housing Construction Association (fourth from left), and Maeng Sungkyu, chairman of the National Assembly Land, Infrastructure and Transport Committee (third from left), are taking a commemorative photo after a meeting at the National Assembly Members' Office Building on the 30th of last month. Provided by the Housing Construction Association

Jung Wonju, president of the Housing Construction Association, said, "The housing industry is being pushed to the brink due to the increase in unsold homes, soaring construction and labor costs, and the continued high interest rates," and added, "It is urgent to prepare comprehensive measures to normalize the housing market, including tax support such as capital gains and acquisition tax reductions, and interest rate cuts." Representative Maeng and other Democratic Party lawmakers said, "We deeply sympathize with the difficulties the industry is facing due to unsold homes and worsening business conditions, and we will work together to find solutions."

On this day, a total of 14 members, including President Jung and the association’s leadership and city/provincial branch heads, attended the meeting. From the Democratic Party, participants included Representative Maeng, as well as Representatives An Taejun and Jung Junho (Land, Infrastructure and Transport Committee), Yang Bunam (Public Administration and Security Committee), and Park Haecheol. The industry submitted a total of 21 proposals across five areas: five measures to resolve unsold housing by sector, five measures to support business liquidity, six measures to expand supply infrastructure, two measures to improve the quality of multi-family housing, and three suggestions for improving corporate tax surcharges.