Minister of Land, Infrastructure and Transport "Reintroduction has the effect of stabilizing housing prices, but also infringes on property rights" (comprehensive)

Hong Ji-seon, Minister of Land, Infrastructure and Transport, announced on the 12th that there is a need to comprehensively review the effect of stabilizing housing prices and the infringement of individual property rights in relation to the reconstruction excess profit recovery system (refund).

Minister Hong responded as follows when People Power Party lawmaker Kim Eun-hye asked about the Ministry of Land, Infrastructure and Transport's position on this at the 7th general meeting of the Land, Infrastructure and Transport Committee of the National Assembly on this day, arguing that re-introduction should be abolished to revitalize private housing supply.

Minister Hong said, "First of all, the abolition bill is pending in the National Assembly," and "I don't think it's a matter to judge whether reintroduction itself is unconditionally right or wrong."

He added, "Reintroduction clearly has the effect of stabilizing prices in the housing market, but on the other hand, it also infringes on personal property rights, so I think it is necessary to comprehensively review such matters."

Ahn Tae-joon, a member of the Democratic Party of Korea, said that it has not been proven whether abolishing or easing reinstatement will actually help expand housing supply and reduce the speed of supply, but pointed out that there is a need for discussion on improving the current method of recovering excess profits from reconstruction.

Minister Hong responded, "I cannot say anything definitively," but added, "As discussions progress, the Ministry of Land, Infrastructure and Transport will also present its opinion."

Regarding the recent housing market situation, Minister Hong said, "The situation in which (housing) listings continue to pile up and transactions are decreasing can be seen as a signal that (housing prices) may be entering a downward phase to some extent."

This is what People Power Party lawmaker Kim Mi-ae gave when asked about the basis for her statement that there were hopeful signs of stabilizing housing prices.

Minister Hong said, “Housing prices in the three districts of Gangnam are already continuing to decline, and the rate of increase is slowing in the outskirts of Seoul,” and predicted that the downward trend could expand if the base interest rate rises at the end of the year.

Regarding the instability in the monthly rent market, he said, “Because providing sufficient housing is a fundamental measure, we will continue to expand the supply of rental housing, especially in the metropolitan area.”

Rep. Kim's point that the government is only focusing on lowering housing prices in Gangnam's 3 districts was countered by saying, "That's not the case at all."

Regarding President Lee Jae-myung's recent statement that house prices in major regions are falling surprisingly, he explained that his intention was to report in a balanced way not only the rise in house prices in the outskirts of Seoul, but also the decline in house prices in major areas such as Gangnam and Yongsan.