People Power Party to Ease DSR Regulations Outside Seoul and Promote Farmland Utilization

Abolishing the Additional 0.75% Interest Rate for Non-Metropolitan Areas

The People Power Party has announced plans to ease the Debt Service Ratio (DSR) regulations on housing outside the Seoul metropolitan area. In addition, the party will significantly relax farmland regulations to promote more active use of agricultural land.

On May 29, Kim Sanghoon, the party’s Policy Committee Chairman, held a press conference at the National Assembly with Floor Leader Kwon Seongdong to announce these additional pledges as part of the June 3 presidential campaign platform.

First, for the so-called “stress DSR,” the party will permanently abolish the current additional interest rate of 0.75% applied to non-metropolitan areas. The party also plans to introduce further measures to ease DSR-related loan restrictions, taking into account the housing market conditions outside the Seoul metropolitan area. Kim stated, “Unlike the metropolitan area, non-metropolitan regions are experiencing a deepening housing market stagnation due to population decline, weakening industrial competitiveness, and decreasing real estate demand.” He added, “Uniform DSR regulations are further depressing the real estate market.”

Yonhap News

Farmland regulations will be significantly relaxed. The required period for self-cultivation after acquiring farmland, currently set at eight years, will be reduced to three years. The party will also abolish the one-hectare ownership limit for those who acquire farmland through inheritance or by leaving farming. The permitted lease period for privately owned farmland after self-cultivation will be changed from the current “three to eight years” to “free leasing after three years,” increasing flexibility in the leasing market. For farmland within priority rural restructuring areas, leasing will be allowed immediately upon acquisition.

Additional policy support will be provided for small and medium-sized enterprises (SMEs). In addition to the current grant-based research and development (R&D) support, a new “loan-based R&D” system will be introduced to expand companies’ options. Financial and tax support for PhD-level researchers working at regionally based SMEs will also be expanded to help local SMEs secure highly skilled research personnel.

The party also pledged to introduce Business Development Companies (BDCs) through the passage of the “Capital Market Act Amendment” proposed by lawmaker Lee Heonseung. BDCs are a type of fund designed to invest in and provide funding for innovative and growth-oriented companies, such as SMEs and venture businesses. The party explained that this would enable the long-term raising of large-scale funds purely from private capital.

Furthermore, to become a global leader in Artificial Intelligence Cloud Transformation (ACx), the party plans to foster 100,000 global software and information and communications technology (SW·ICT) “transcendent products.” Kim stated, “We will build an innovation ecosystem where anyone with an idea or new technology can commercialize their research and development at any time.” He added, “We will also support the training of one million related professionals and the establishment of an online SW·ICT education broadcasting station led by businesses.”

Other pledges include: introducing a national health screening system for fundus examinations to prevent and treat eye diseases early; improving the compensation succession system for bereaved families of national merit recipients; providing national budget support for the establishment of integrated care services and infrastructure; revitalizing the Hometown Love Donation Program; enacting the Korea Council for Distance Higher Education Act to drive AI digital education innovation; enacting the Hospital Promotion and Support Act to ensure the sustainability of healthcare; eradicating drunk driving and preventing repeat offenses; making identity verification mandatory for babysitters and providing income tax deductions for babysitter fees; and promoting the fishing industry and boosting the marine tourism industry.