Ruling Party Shields Against Real Estate Anxiety... Forms Housing Market Stabilization TF

Han Jeongae Appointed as TF Head...
Focus on Supply Measures
Controversial 'Property Tax' Off the Table for Discussion

On October 21, the Democratic Party of Korea formed a Housing Market Stabilization Task Force (TF) to support the follow-up measures for the government's October 15 real estate policy, appointing Policy Committee Chairperson Han Jeongae as the head of the TF.

This move is seen as a swift response to the growing consensus that it will be difficult to guarantee victory in next year's local elections if public anxiety continues to rise in Seoul and the metropolitan area following the government's October 15 real estate policy. However, the TF does not plan to address tax reforms such as property tax increases, which remain contentious both within the government and the party.

Kim Hyunjung, the Democratic Party's spokesperson for parliamentary affairs, met with reporters after a countermeasure meeting for the National Assembly audit held at the National Assembly that morning and stated, "The Housing Market Stabilization TF will be reported to and approved by the Supreme Council tomorrow."

Since coordination with each standing committee is necessary for housing stabilization policies, Policy Committee Chairperson Han, who oversees various party policies including real estate, will lead the TF, and lawmakers who have been elected at least twice will be included. A party official explained, "Lawmakers at the secretary level of each standing committee will participate in the TF."

The TF plans to focus its discussions on housing supply measures. As all 25 districts of Seoul and 12 areas in Gyeonggi Province-including Gwacheon, Seongnam (Bundang, Sujeong, Jungwon), Gwangmyeong, Suwon (Yeongtong, Jangan, Paldal), Anyang (Dongan District), Yongin (Suji District), Uiwang, and Hanam-have been designated as regulated areas, speculative zones, or land transaction permit zones, there has been criticism that regulations without supply measures are merely temporary fixes.

Based on the previously announced September 7 real estate policy, which proposed supplying 1.35 million housing units in the metropolitan area by 2030, the party and government plan to present detailed annual housing supply plans for all 25 districts of Seoul by the end of the year. Accordingly, legislative issues such as easing redevelopment and reconstruction regulations will also be discussed.

Moon Jinseok, the Democratic Party's Deputy Floor Leader for Operations, told reporters, "The government appears to be preparing about nine bills related to redevelopment and reconstruction," and added, "There is a need to provide legal support for redevelopment and reconstruction to expand the areas where the private sector can participate in construction."

However, since these discussions could have a significant impact on the real estate market, the TF's meetings will be held privately. Spokesperson Kim explained, "We will strive to produce effective measures that can actually stabilize the supply."

Nevertheless, the TF does not plan to discuss tax reforms such as the recently controversial property tax increases. Recently, Kim Yongbeom, Policy Chief at the Presidential Office, stated during a YouTube broadcast on October 15 that Korea's high transaction taxes and low property taxes are a cause of soaring real estate prices and called for a comprehensive review of the tax system. This has sparked disagreements within the Democratic Party.

Given that differences within the ruling party have become apparent at a time when they need to respond to attacks from the People Power Party, it is interpreted that opinions should be consolidated at the party leadership level, rather than within the TF. Spokesperson Kim firmly stated, "There has been no discussion of property tax within the party, nor is there any official position on the matter."

Meanwhile, the People Power Party has formed a Special Committee on Real Estate Normalization, chaired by Jang Donghyuk. The vice chairs include Policy Committee Chairperson Kim Doeub, as well as lawmakers Cho Eunhee, Kwon Youngse, Kim Eunhye, Cho Jeonghun, Kang Minkook, and Park Sooyoung-all of whom have been elected at least twice-as well as S him Kyoun, a professor of real estate at Konkuk University and former president of the Korea Research Institute for Human Settlements.

Since the government announced the 'Housing Market Stabilization Measures' for Seoul and some areas in Gyeonggi Province, concerns have arisen that the availability of jeonse (long-term lease) housing may disappear. On the 16th, a real estate listing board in Mapo, Seoul, showed an X mark on the jeonse information. 2025.10.16 Photo by Yoon Dongju