Ahead of Next Year's Local Elections, Both Ruling and Opposition Parties Compete with Supply-Side Real Estate Solutions

Democratic Party Moves to Contain Crisis with Supply Measures
Task Force Chief Han Jeongae Hints at Targeted Supply
People Power Party Operates Two-Track Real Estate Committee
Discussing Private Sector-Centered Supply Solutions

Following the October 15 real estate measures, market instability has increased, prompting both the ruling and opposition parties to compete in proposing supply solutions. This move is seen as an effort to win over public sentiment in Seoul, which has emerged as a key battleground for the 9th nationwide local elections scheduled for June 3 next year.

On October 22, Democratic Party lawmaker Park Jumin appeared on MBC Radio's 'Kim Jongbae's Focus' and, when asked about the impact of real estate policy on the local elections, stated, "If our party's Seoul mayoral candidates come forward with proper supply solutions, it would not necessarily be a bad situation." Park is one of the potential candidates for Seoul mayor from the ruling bloc.

Han Jeong-ae, the Chair of the Policy Committee of the Democratic Party of Korea, is speaking at the National Assembly's National Audit Countermeasures Meeting held on the 21st. 2025.10.21 Photo by Kim Hyunmin

As criticism from the opposition, such as claims of "destroying the housing ladder," intensified, the Democratic Party moved to contain the situation. On October 21, the party announced the launch of a Housing Market Stabilization Task Force (TF) led by Policy Committee Chair Han Jeongae. The party is expected to propose measures to boost public-led supply, while also revitalizing private sector supply by easing redevelopment and reconstruction regulations. By December, they plan to establish detailed housing supply plans, including concrete supply targets by city, county, and district. However, they have drawn a clear line against the possibility of increasing property holding taxes, which could negatively affect public sentiment in the Seoul metropolitan area.

The People Power Party is operating its special real estate committee on a two-track system, focusing its efforts on real estate policy. On this day, the party held the first meeting of the Special Committee for Real Estate Policy Normalization. Starting with a field meeting with Seoul Mayor Oh Sehoon on October 24, they will begin gathering public opinion. The venue for the meeting is likely to be a redevelopment site in the northern part of Seoul.

Jang Donghyuk, leader of the People Power Party, is speaking at the first meeting of the Special Committee for Real Estate Policy Normalization held at the National Assembly on October 22, 2025. Photo by Kim Hyunmin

The special committee plans to present private sector-focused supply measures in cooperation with Seoul City and others. They are considering the abolition of the reconstruction excess profit recovery system, as well as streamlining the approval processes for reconstruction and redevelopment. Kim Eunhye, Senior Deputy Floor Leader for Policy of the People Power Party and a member of the committee, told The Asia Business Daily, "We need to pass a special law to combine the approval stages for reconstruction and redevelopment, and transfer floor area ratio incentives to the private sector rather than the public sector." The party also plans to demand revisions to the so-called Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), which restricts construction companies, as well as amendments to the Serious Accidents Punishment Act.

The Seoul Metropolitan Chapter of the People Power Party has formed the Special Committee for Normalization of the Housing Ladder, appointing lawmaker Kim Jaeseop from the Dobong-gap district as its chair. In a phone interview, Kim stated, "While it is necessary to build new housing on state-owned or public land, we are also considering removing obstacles at existing redevelopment and reconstruction sites."