National Policy Planning Committee: "Prefer Not to Build New Towns in the Metropolitan Area Just to Control Real Estate Prices"

Opinion Delivered to the Ministry of Land, Infrastructure and Transport
Lee Choonseok, Head of Economic Division 2
"Sharp Rise in Real Estate Is Temporary,
Striving for Fundamental Solutions"

Yonhap News Agency

The National Policy Planning Committee, which serves as the transition team for President Lee Jaemyung, recently stated regarding the sharp rise in real estate prices in the Seoul metropolitan area, "It does not seem appropriate to announce immediate measures in response to temporary situations."

Lee Choonseok, head of the Economic Division 2 in charge of the Ministry of Land, Infrastructure and Transport, said at a press briefing held on June 22 at the annex of the Government Complex Seoul in Changseong-dong, Jongno-gu, Seoul, "We will not establish temporary measures, but will strive to come up with fundamental solutions," when asked about the rise in real estate prices.

He added, "Real estate is an extremely important and sensitive issue, so it cannot be addressed or policy established based on fragmented reports," and continued, "I think it would be better to present a comprehensive plan all at once when it is ready."

However, he also revealed that during the Ministry of Land, Infrastructure and Transport's policy briefing held in Sejong on June 20, he had requested, "(To the officials in charge) I asked that they refrain from creating new towns around the Seoul metropolitan area or similar measures aimed solely at controlling real estate prices."

At that time, it is known that the Ministry of Land, Infrastructure and Transport presented to the members of Division 2 an overview of plans to expand housing supply in the metropolitan area and elsewhere, based on the recent real estate market situation and the new administration's pledges.

According to the Korea Real Estate Board, apartment sales prices in Seoul rose by 0.36% in the third week of June (as of June 16) compared to the previous week. This is the largest increase since the second week of September 2018 (0.45%) during the Moon Jaein administration.

Meanwhile, Park Honggeun, head of the Policy Planning Division, also stated, "(The real estate issue) is not something we can discuss at this time," and added, "It is appropriate for the Presidential Office and the ruling party to take the lead in discussing urgent matters."