Land Minister Nominee: "'Geonpok' Term Inappropriate... Will Create Cooperative Construction Sites"

Response to National Assembly’s Request Ahead of July 29 Confirmation Hearing
“Will Rapidly Expand and Establish Electronic Payment System in the Private Sector”

Kim Yoonduk, the nominee for Minister of Land, Infrastructure and Transport, stated, "I believe the term 'Geonpok'?which likens construction workers to organized crime members?is inappropriate," and added, "I will not use it going forward." Former President Yoon Sukyeol and other key officials from the previous administration have used the term "Geonpok" in official settings, which has led to confrontations with labor unions.

In a written response submitted ahead of the National Assembly confirmation hearing scheduled for July 29, Kim said, "I understand that the previous administration used unfair terms such as Geonpok (a combination of construction union and organized crime) to describe construction union activities." He continued, "I will strive to ensure that the legitimate rights and interests of construction workers are protected, and will prioritize resolving chronic issues such as illegal subcontracting and wage arrears, so that labor and management can coexist harmoniously at construction sites."

In 2023, members of the Korean Confederation of Trade Unions (KCTU) Construction Union held signs in front of the KCTU Construction Union Seoul Gyeonggi Northern Branch office in Yeongdeungpo-gu, Seoul, where a search and seizure operation was underway. The police conducted the search and seizure on the two major construction unions due to illegal activities at construction sites. Photo by Yonhap News

As part of efforts to eliminate wage arrears and other payment delays in the construction sector, Kim also pledged to actively push for mandatory adoption of the electronic payment system in private construction projects. Currently, a related amendment to the Framework Act on the Construction Industry, proposed by both ruling and opposition members of the National Assembly's Land, Infrastructure and Transport Committee, is pending. Kim emphasized, "If I am appointed as minister, I will work to ensure that, following the passage of the amendment, the system is quickly established on-site." He added, "I will also implement various measures to eradicate payment delays, such as special on-site inspections and public disclosure of habitual offenders."

As his main policy priorities, Kim highlighted housing issues and balanced regional development. He explained, "Resolving people's housing concerns through stable market management, including housing supply, and providing robust and comprehensive housing welfare for various social groups are urgent tasks." He further stated, "It is also important to achieve balanced national development and expand regional transportation networks, for example through the development of five major metropolitan areas and three specialized zones, so that people can enjoy a basic quality of life wherever they are."

He continued, "To revitalize the struggling economy, we will foster future growth engines such as urban air mobility (UAM) and autonomous vehicles," and added, "I believe we must also ensure thorough safety management across all areas of land, transportation, aviation, and construction, which are fundamental responsibilities of the state."

Kim Yoonduk, nominee for Minister of Land, Infrastructure and Transport, is arriving at the Government Complex Gwacheon on the 15th to prepare for the confirmation hearing. 2025.07.15 Photo by Yoon Dongju

Regarding the recent overheating of housing prices in some areas of Seoul and the metropolitan region, Kim assessed that the 6·27 loan regulations have brought some stabilization. However, since President Lee Jaemyung also emphasized the importance of housing supply during his candidacy, Kim stated that he would present measures to expand supply soon after taking office. He said, "I believe the most important signal for market stability is that high-quality housing is sufficiently supplied in prime locations," and added, "If appointed, I will work to promptly prepare and announce measures to boost housing supply in the metropolitan area."

On the previous administration's real estate policies, Kim commented, "The easing of real estate loan and tax regulations concentrated their effects in the metropolitan area, which contributed to rising housing prices," and added, "There was a lack of focus on housing stability for ordinary citizens, as seen in the reduction of public rental housing supply targets compared to the previous government."

A view of apartment complexes in downtown Seoul as seen from Namsan, Seoul. 2025.06.27 Photo by Dongju Yoon

To increase housing supply in urban centers such as Seoul, Kim said it is necessary to accelerate redevelopment projects. Regarding some calls to abolish the reconstruction excess profit levy to facilitate this, he stated, "I will work to develop rational alternatives." The abolition of the Act on the Recovery of Excess Profits from Reconstruction is currently under discussion in the National Assembly. Kim clarified, "I believe it is necessary to review and discuss rational alternatives that can balance the interests of both the public and private sectors while increasing urban housing supply," drawing a line against outright abolition.

Regarding the reform and changing role of Korea Land and Housing Corporation (LH), which President Lee has also requested, Kim said, "I am aware that LH has not been fulfilling its original role in the process of developing and utilizing residential land," and added, "I plan to pursue overall improvements to LH's business practices." On the application of the debt service ratio (DSR) to jeonse loans as a stabilization measure for the rental market, Kim expressed caution, stating, "There is a possibility that loan limits could be reduced, particularly for low-income citizens and genuine demanders."