National Assembly Forum Held... President's Remarks Spark Debate
"Private Sector Monopolizes Profits, LH Is Just Selling Land"
Strong Criticism of the Current Structure
The Alternative: "From Sales to Leasing"
"A National Project"... E
At a National Assembly forum, a fundamental overhaul of Korea Land and Housing Corporation (LH)'s land sale model was proposed, with calls to shift toward a "leasehold land supply" system. The argument is that the current structure-where development profits are handed over to the private sector, fueling high pre-sale prices and household debt-should be replaced by a paradigm in which "land is leased rather than sold."
The policy forum, titled "How Should LH's Land Sale Model Be Reformed?" was held on August 18 at the National Assembly Members' Office Building. It was co-hosted by lawmakers from the Democratic Party, the Cho Kuk Innovation Party, and the Basic Income Party, and co-organized by the Land and Liberty Research Institute and the Hananoori Northeast Asia Research Institute. Key Democratic Party figures, including Choo Mi-ae, nominee for the Legislation and Judiciary Committee Chair, Jin Sung-joon, Policy Committee Chair, Park Jumin, Welfare Committee Chair, and Bok Gi-wang, Land, Infrastructure and Transport Committee Secretary, also joined as hosts, lending weight to the event. The forum was an opportunity to elevate President Lee Jaemyung's concerns about LH's land sale practices into a broader discussion on institutional reform.
"Private Sector Gains Development Profits, LH Sells Land"... Criticism of the Current Structure
On the 18th, a discussion on LH reform is taking place at the National Assembly Members' Office Building. Land and Liberty Research Institute.
Forum participants unanimously criticized LH's current land sale structure for producing a range of problems. Democratic Party lawmaker Yeom Tae-young stated, "LH has covered public rental housing deficits by selling land acquired from private owners and developed by the corporation. As a result, a significant portion of development profits has flowed to private construction companies and early buyers, fueling high pre-sale prices, increasing household debt, and exacerbating housing insecurity."
Nam Giyeop, Director of the Land and Liberty Research Institute and a co-presenter, also pointed out, "The criticism that LH is engaged in land speculation is not just rhetoric but a policy reality." He highlighted the challenges of the current cross-subsidy structure and proposed leasehold supply as an alternative.
"From Sale to Lease"... Returning Development Profits to Society
The solution commonly suggested by participants was to lease, rather than sell, land. Lawmaker Yeom argued, "If LH retains land ownership and leases it, all development profits can be returned to society, and affordable housing can be supplied stably over the long term."
Jo Sungchan, Director of the Hananoori Northeast Asia Research Institute and a co-presenter, noted, "Joint land ownership and leasehold use have been longstanding issues. However, simply switching to a leasehold model will not resolve all problems. Institutional mechanisms must be established to prevent the privatization of development profits, and LH must also build up its capabilities in land leasing and management."
Appraiser Jo Junghun, who participated as a discussant, commented, "Leasehold land supply is a system that can provide affordable housing while blocking speculative demand. If market rents are designed reasonably, this could become a sustainable model."
"A National Project"... Comprehensive Overhaul of Finance and Legal Systems Needed
The discussion expanded beyond simple institutional changes to the need for structural reform at the national level. Bae Moonho, former adjunct professor at LH University of Land and Housing, stated, "Shifting LH's supply model to leasing is a national project that requires a comprehensive redesign of land policy, financial structures, and legal systems. In the short term, LH's revenues may decrease, but in the long run, this reform is essential for national sustainability and housing stability for the people."
The forum confirmed the structural limitations of LH's current land sale model and served as a venue to discuss the social significance and implementation requirements of a shift to leasehold. Participants stressed, "Now is the time to shift the paradigm from land sales to land leases," emphasizing that the National Assembly and government must take responsibility for institutional support and build social consensus.
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