[New Year's Address] Kim Sung Eun, President of the Korea Housing Builders Association: "Proactive Government Support Needed to Serve as Economic Pillar"

On December 31, Sung Eun Kim, President of the Korea Housing Builders Association, stated in his New Year’s address, “Proactive policy support from the government is urgently needed to normalize the housing construction industry so that it can serve as a pillar for economic growth.”

President Kim said, “The housing industry has a significant impact on both the grassroots economy and the national economy as a whole, and its influence on related industries and employment is outstanding compared to other sectors.”

He also made specific policy recommendations. He emphasized the need for effective liquidity support measures for housing businesses, such as deferring differential application based on capital adequacy ratios, and for measures to encourage the participation of small and medium-sized housing companies in small-scale redevelopment projects. He argued that, in order to revitalize the supply of private rental housing, the standard construction cost should be regularly increased, and that the criteria for defect assessments should be legislated to establish a response system for planned defect lawsuits.

Sung Eun Kim, President of the Korea Housing Builders Association. Photo provided by the Association

He stressed that mortgage loan interest rates should be lowered to boost housing demand. In addition, he called for forward-looking policies such as exempting local areas from the third phase of the DSR (Debt Service Ratio) regulation, applying a 50% reduction and exemption from heavy taxation on acquisition tax for home purchases in non-metropolitan areas, and granting a five-year capital gains tax reduction.

President Kim said, “We will focus our efforts on implementing proactive housing policies that can normalize the stagnant housing market,” adding, “We plan to work closely with government authorities to devise measures for restoring normalcy to the housing business.” He went on to say, “We will also strive to diversify the housing guarantee structure, which is currently monopolized by the Korea Housing and Urban Guarantee Corporation, and place emphasis on enhancing the association’s standing and strengthening ESG management among member companies through various social contribution activities.”