Vice Minister of Land Signals Additional Housing Supply in February: "Announcement Possible If Local Governments Agree"

"Taereung Golf Course, Different from the Moon Administration"
10,000 Units in Yongsan: "Seoul's Concerns Are Misguided"
Exclusive Rental Supply in Gwacheon: "Not Under Consideration"
Lifting Land Transaction Permits: "Not the Right Time Ye

Lee Itak, First Vice Minister of the Ministry of Land, Infrastructure and Transport, stated on the 30th, "In addition to this announcement, additional supply measures may be introduced in February," adding, "There are sites that were omitted from yesterday's announcement."

Appearing on MBC Radio's 'Kim Jongbae's Focus' that morning, Vice Minister Lee responded to a question about whether further measures would be announced, saying, "It's not a new set of measures," and added, "If discussions with relevant agencies and local governments go well, we will make additional announcements." Regarding whether there are still public sites available for acquisition, he said, "I believe there are."

The government, in a joint briefing with related ministries the previous day, announced the 'Measures to Expand and Accelerate Urban Housing Supply.' As a follow-up to the September 7 measures last year, the plan is to supply about 60,000 housing units by utilizing idle urban land and aging government buildings in the Seoul metropolitan area, including Yongsan International Business District in Seoul (10,000 units), Taereung Country Club (6,800 units), Gwacheon Racecourse and Counterintelligence Command in Gyeonggi Province (9,800 units), and Seongnam (6,300 units). The government set a goal to begin construction between 2027 and 2030 to ensure housing stability for young people and newlyweds.

Lee Itak, First Vice Minister of the Ministry of Land, Infrastructure and Transport. Ministry of Land, Infrastructure and Transport

Regarding concerns about local opposition to the Taereung Golf Course site, Vice Minister Lee said, "During the Moon Jae-in administration, the announcement came late in the term, and there was no World Heritage impact assessment for the 10,000-unit supply plan." He continued, "This time, we have coordinated with the National Heritage Administration and have conducted a World Heritage impact assessment. We are also discussing transportation issues and self-sufficiency functions with Nowon District," adding, "A transportation plan will also be announced together."

In response to concerns raised by the Seoul Metropolitan Government that increasing the number of units at the Yongsan Maintenance Depot from 6,000 to 10,000 could delay supply due to the need to reestablish infrastructure, Vice Minister Lee countered, "I think that is incorrect." He explained, "Currently, the average floor area ratio is about 800%, but in international business districts like Hong Kong, it can exceed 1,000%," and added, "We believe that revising the business plan will not take much time."

Regarding Seoul's claim that "raising the floor area ratio for private redevelopment and reconstruction would incentivize private supply," Vice Minister Lee said, "That was addressed in the September 7 measures," and added, "We must comprehensively consider the impact on housing supply and real estate market prices." He explained, "If you increase the floor area ratio and proceed with redevelopment or reconstruction, it takes 7 to 8 years until move-in. Public projects could actually be faster," and added, "Since this has an impact on the market, we have requested the National Assembly to facilitate public discussion." This requires a legislative amendment.

Regarding the possibility of building apartments on the Yongsan Park site, which has been discussed in some circles, Vice Minister Lee stated, "Yongsan Park is designated as a national park under the Yongsan Park Act," and added, "If the law is not amended, (apartment construction) is not possible. Building national consensus is even more important," drawing a clear line.

On the supply methods for young people and newlyweds, Vice Minister Lee said, "We plan to announce a 'Housing Welfare Plan' in March," adding, "It will include measures to restore the housing ladder, such as public sales, public rentals, 'affordable housing,' and equity accumulation-type sales." The equity accumulation model allows individuals to gradually increase their ownership share while earning income, ultimately securing full ownership without a large initial payment.

When asked whether all of the Gwacheon Racecourse and Counterintelligence Command sites would be supplied as rental units, Vice Minister Lee replied, "We cannot go with rental only," adding, "Even in the United States, there have been cases where rental apartment complexes were demolished due to slum conditions." He explained, "There will be a mix of sales and rentals."

Regarding the plan to lift the greenbelt designation, Vice Minister Lee said, "Two sites in Seongnam were included this time because they are attractive and suitable," but also noted, "It may be difficult to begin construction on greenbelt sites within the current term. Since it may not be possible to start construction within four years, we need to carefully consider the timeline."

On the plan to lift the land transaction permit system (Toheje) across Seoul, he said, "We need to monitor market conditions, but it is not yet the right time to do so."

Regarding the end of the capital gains tax exemption for multiple home owners on May 9, Vice Minister Lee said, "If we keep extending the exemption after creating the system, it is essentially the same as abolishing it," adding, "Consistency in the tax system is important. We see this as normalization."

On the impact of the current supply measures on real estate prices, Vice Minister Lee stated, "The primary goal is to ensure that the public can trust this supply." He added, "If the public believes that the 61,000 units announced in this plan will be supplied visibly, their anxiety about housing will be eased, and what is commonly referred to these days as 'panic buying' may decrease," cautiously predicting the outcome. Regarding price stabilization, he said, "It would be good if it happens in the short term, but if the public and the market have confidence, I believe stabilization will follow."