Signaling a Complete Overhaul of the Jiju-taek System
"Asking the National Assembly to Decide on Its Future"
On Reverse Discrimination from June 27 Loan Regulations:
"Please See It as a Market Adjustment Process"
On Housing Supply Solutions:
"Securing Land First... Will Seek New Sites Beyond Idle Land"
On Controversy over Children's Rental Deposits:
"Acknowledge Relative Advantage... Accept the Criticism Humbly"
On Allegations of Preferential Treatment for Woojin Construction:
"No Corruption, Absolutely No Special Treatment"
On July 29, Kim Yoonduk, nominee for Minister of Land, Infrastructure and Transport, expressed strong concerns during a National Assembly confirmation hearing, stating, "Regional housing cooperatives (Jiju-taek) are in many cases operated in a quasi-fraudulent manner." He emphasized that "an urgent overhaul of the system is needed" in response to the sharp increase in complaints from victims of Jiju-taek projects in recent years. During the hearing, lawmakers from both parties raised a range of issues, including housing policy, real estate supply, loan regulations, parental support for rental deposits, and debt related to Woojin Construction.
"Many Jiju-taek Projects Operate as Quasi-Fraudulent Structures"
Kim Yoonduk, nominee for Minister of Land, Infrastructure and Transport, is speaking at the confirmation hearing held by the National Assembly Land, Infrastructure and Transport Committee on the 29th. 2025.7.29 Photo by Kim Hyunmin
In response to Democratic Party lawmaker Ahn Taejun’s criticism that "Jiju-taek projects are proliferating in regulatory blind spots," Kim replied, "If the National Assembly discusses and considers whether to continue or abolish these projects, I believe it will help address these cases that are almost quasi-fraudulent. Strong measures are necessary." This signals a complete overhaul of the Jiju-taek system, which President Lee Jaemyung has also identified as problematic.
Kim Eunhye, a lawmaker from the People Power Party, demanded countermeasures, arguing, "Due to the government's June 27 loan regulations, young people and newlyweds are actually facing reverse discrimination." In response, Kim stated, "Policies for young people and newlyweds are, of course, the right direction. However, if policy loans are provided excessively, it leads to increased cash liquidity and becomes linked to housing prices, so please understand that this is an adjustment process." Regarding criticism that redevelopment projects are being delayed, he said, "If we simplify the steps in the redevelopment and reconstruction process or adjust factors such as the floor area ratio, there are various ways to revitalize the projects. I believe such discussions would be desirable."
There were also many questions about supply measures. Lee Yeonhee, a Democratic Party lawmaker, said, "Although supply measures are discussed, specific locations and methodologies are missing," and criticized the government for making "repeated declarations without practical implementation." Kim responded, "To establish a state-led supply system, we will start by securing land," and added, "We are designing measures to supply housing at the right time and in the right places through consultations with local governments." In response to a similar question from Democratic Party lawmaker Song Kiheon, Kim said, "I will actively seek new supply sites beyond the idle land reviewed during the Moon Jaein administration."
On 'Parental Support' for Children's Rental Deposits: "I Accept the Criticism Humbly"
Kim Yoonduk, nominee for Minister of Land, Infrastructure and Transport, is drinking water at the confirmation hearing held by the National Assembly Land, Infrastructure and Transport Committee on the 29th. 2025.7.29 Photo by Kim Hyunmin
Kim faced criticism over reports that his children borrowed 480 million won and 170 million won respectively from their parents, raising a total of 650 million won for rental deposits?a practice dubbed "split loans" and "parental support." Bae Joonyoung, a lawmaker from the People Power Party, said, "These days, it is impossible for young people to secure a 30-pyeong rental apartment in Seoul without a loan. If you provide hundreds of millions of won to your own children for rent while imposing loan restrictions on ordinary citizens and real demanders, who could possibly empathize with that?" In response, Kim said, "If you ask whether my daughter, as a lawmaker's child, has received benefits compared to ordinary people, I have no choice but to say yes. I accept that criticism humbly."
Allegations of preferential treatment and debt relations with Woojin Construction, a construction company based in North Jeolla Province, were also raised. This concerns a loan of 50 million won Kim received from the CEO of Woojin Construction, a high school junior, during the 19th National Assembly election. Kim Heejung, a lawmaker from the People Power Party, said, "You did not leave any written loan agreement, nor did you pay any interest. How do you explain the fact that a company with no prior record of winning government contracts suddenly won a string of public projects after your election in the district?" Kim replied, "At first glance, it may appear suspicious because there are many cases of corruption involving local construction companies. However, the reason I can stand firm even when the name Woojin Construction is mentioned is precisely because there was no such corruption."
Meanwhile, after the confirmation hearing, Kim is expected to hold his inauguration ceremony at the Sejong Government Complex on July 31, when the hearing report is scheduled to be adopted.
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