Statement from MBC Radio Interview
“Actual Supply Almost at Its Worst”
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| Han Jeong-ae, Democratic Party of Korea Policy Committee Chair. The photo shows her speaking at a policy meeting held at the National Assembly on the 7th. [Yonhap] |
[Herald Economy=Reporter Andae-yong] Han Jeong-ae, the Democratic Party of Korea Policy Committee Chair, appeared on MBC Radio’s ‘Kim Jong-bae’s Attention’ on the 13th and mentioned about real estate measures, saying, “The supply measure will likely be presented comprehensively by ministries, with the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport taking the lead, so it will probably be released soon.”
On that day’s broadcast, Han stated, “Yesterday, Kim Yoon-deok, the Minister of Land, Infrastructure, and Transport, finally received his appointment letter.”
The interviewer asked, “President Lee Jae-myung also emphasized multiple times that funds concentrated in real estate should be redirected to the stock market. However, for that to happen, there must be incentives from the stock market, and another essential part is breaking the belief that real estate can yield profits. In addition to the 6.27 mortgage regulations, won’t other measures to stabilize the real estate market in the long term be necessary?” This led to her response.
Han said, “When compared to the same period in the Moon Jae-in administration, only about 40% has commenced in the same period of the Yoon Suk-yeol administration,” adding, “The actual supply is almost at its worst level, which is part of why the market is currently very unstable. Therefore, the focus is on how quickly supply can be augmented.”
She continued, “Rather than creating new development sites, we’ll concentrate on existing third-phase new towns,” adding, “We plan to act quickly there, and for areas already designated as new sites, we’ll slightly increase the supply volume. There are idle lands or areas owned by the government that can be developed.”
When the interviewer noted, “There’s a lot of talk that redevelopment is the only way in Seoul,” Han responded, “Redevelopment and reconstruction are ongoing, but they take longer than expected. So in terms of redevelopment and reconstruction, we will perhaps streamline the approval procedures or conduct them in parallel to reduce the regulatory period.”
She further added, “Apart from that, we plan to accelerate supply in already designated areas to provide visible and quickly progressing supply measures, ensuring that necessary areas receive supply.”
Regarding questions on legislative review amid President Lee Jae-myung’s repeated emphasis on strict responses to industrial accidents, Han commented, “There is almost a legal framework under the Serious Accidents Punishment Act and Industrial Safety and Health Act,” and that they are currently examining what needs meticulous improvements within that framework.
Han continued, “There are details to be supplemented, like where construction companies are not excluded from public works despite accidents occurring, and the complex point structure system. These things can eventually send a strong policy message to the market through policy enhancements, and these can be progressed rapidly.”
On tax amendments, when asked about plans to address the highest tax rate on separated dividend income taxation, Han stated, “Currently, this is not in the review stage.”
She explained, “Dividend income taxation and similar issues are all tax-related matters, ultimately to be discussed in the National Assembly. So we have ample time to listen to various opinions, review them, and make accurate calculations.”
Han reiterated to the government that her stance on maintaining the current major shareholder criterion for stock transfer tax, set at 50 billion won, had been communicated, saying, “That (50 billion won) was how it was communicated to the government; I’d prefer if it weren’t changed.” She mentioned that the government included it in the tax revision proposal and that opinions on this proposal will be collected until probably August 14th.
She concluded, “After the period ends, we should gather various opinions, sort them out, and that’s when we’ll need to start full-scale discussions.”