Rival Parties Clash Over Real Estate Issues
Instead of Seeking Solutions, Political Infighting Intensifies
Since the government announced the 10·15 real estate measures, the war of words between the Democratic Party of Korea and the People Power Party over the real estate holdings and transactions of key figures has intensified. With more than 75% of national assets concentrated in real estate, both parties appear determined not to lose ground in the battle to shape public opinion.
Kim Do-eup, Policy Committee Chairman of the People Power Party, stated at the Supreme Council meeting held at the National Assembly on the morning of October 27, "The Lee Jaemyung administration has announced three rounds of real estate measures, but instead of stabilizing housing prices, it has only fueled public anger," adding, "Jeonse prices have soared, and the shift from jeonse to monthly rent is accelerating."
The real estate dispute between the two parties began with an offensive by the People Power Party against Kim Byungki, floor leader of the Democratic Party. Previously, the People Power Party had criticized Kim Byungki, floor leader of the Democratic Party, Lee Sangkyung, former First Vice Minister of Land, Infrastructure and Transport, and other ruling party figures, pointing out their home purchases and involvement in gap investment following the 10·15 measures, labeling it as "kicking away the housing ladder." As controversy over Lee's gap investment in real estate spread, he resigned on October 24.
The Democratic Party also struck back at the People Power Party. Regarding Representative Jang, the Democratic Party stated, "Jang Donghyuk, who owns four apartments, is practically the chairman of the special committee for sweeping up real estate. The answer is clear when you look at the real estate assets of Representative Jang, his spouse, and their family. They have swept up properties across the country, from Guro and Yeongdeungpo in Seoul to Gyeonggi Province, Gyeongnam, Daejeon, and Boryeong in South Chungcheong Province." The Democratic Party demanded that Jang step down as chairman of the People Power Party's Special Committee on Real Estate and also proposed a comprehensive real estate investigation for all members of the National Assembly.
In response, Representative Jang held a press conference on October 25 and countered that, aside from two apartments inherited by his spouse from his late father-in-law, all other properties-including an apartment in Guro-gu, Seoul, an officetel in Yeouido, an apartment in Boryeong, South Chungcheong Province, and a single-family house where his elderly mother lives-were for actual residence. He added that even when combining all six properties, their total value is only 850 million won, and he would be willing to exchange them for Floor Leader Kim's apartment in Songpa-gu.
Park Sunghoon, Chief Spokesperson of the People Power Party, responded to a reporter's question at the National Assembly that morning about whether Representative Jang plans to dispose of his real estate holdings by saying, "There is no need to respond directly to that issue," and added, "The Democratic Party is attempting to change the narrative."
Lee Junseok, leader of the Reform Party, who had remained silent on the real estate dispute between the two parties, also posted on Facebook the same day, criticizing the Democratic Party by saying, "It feels like people who drive Maybachs and Bentleys are attacking someone who owns a midsize car, a compact car, a delivery truck, and a motorcycle for having four vehicles."
Critics have pointed out that, at a time when apartment prices in Seoul rose by 1.46% in October compared to the previous month and effective follow-up measures are needed, the parties are only engaging in conflict instead of working together to find solutions.
Meanwhile, after calls for raising property holding taxes and for easing or abolishing the reconstruction excess profit recapture system (known as "rechohwan"), disagreements have emerged, leading party leader Jung Cheongrae to issue a gag order, resulting in confusion. The intention is for the recently launched Democratic Party Housing Market Stabilization Task Force to lead policy discussions and deliver a unified message.
Park Soo-hyun, Chief Spokesperson of the Democratic Party, was asked by reporters at the National Assembly that morning about a text message conversation involving Representative Han Jeongae, Policy Committee Chair and head of the task force, regarding the authority to lift greenbelt restrictions. He replied, "At this stage, nothing is being discussed nor is there any plan to discuss it," adding, "However, we will focus on preparing more detailed and supplementary supply measures by the end of the year so that the 6·27 and 10·15 measures can better support genuine homebuyers."
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