October 15 Real Estate Measures Met with Mixed Reactions from Ruling and Opposition Parties: ‘Caution’ vs. ‘Complete Housing Deprivation’ (Summary)

Seoul and 12 regions in Gyeonggi Province designated as ‘real estate regulatory areas’
Democratic Party: “Support for government’s measures… need to observe the effects”
People Power Party: “A policy that harms youths and the working class… Moon Jae-in Season 2”, The announcement of the October 15 real estate measures by the Lee Jae-myung administration has led to mixed reactions of cautious anticipation and concern between the ruling and opposition parties.’,
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, ‘On the 15th, Jang Dong-hyuk, the leader of the People Power Party, held an emergency press conference at the National Assembly, labeling the measures as ‘Moon Jae-in regime Season 2, home price surge Season 2’ and critiqued it as “a policy that ruins home prices instead of controlling them.”‘,
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, Yonhap News,
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, ‘The government has designated the entire region of Seoul and 12 southern areas in Gyeonggi Province as restricted areas for land transactions, adjustment targets, and speculative overheating districts to reduce real estate loans and impose limitations on transactions. For mortgage loans, houses exceeding 1.5 billion KRW up to 2.5 billion KRW are limited to 400 million KRW, and those exceeding 2.5 billion KRW to 200 million KRW.’,
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, ‘Jang criticized, “The core issue is the leftist regime’s skewed perception of real estate policy as speculation and a game of hot potato rather than an economic pillar,” stating that this will “lead to 31 defeats in 31 attempts.”‘,
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, ‘Specifically, he foresaw it as a complete blocking of housing upward mobility for the common people. A People Power Party official remarked, “Loan restrictions don’t impact high-end housing buyers much, so it will hurt the working class,” adding, “It’s like using the ultimate restrictive measure, the ‘ultimate land transaction system,’ to completely sever the housing ladder for the non-homeowners.’,
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, ‘The measures are projected to greatly affect not only the buying and selling market but also the rental market. Due to tax penalties such as increased acquisition and transfer taxes for multi-home owners, and the exclusion of long-term holding special deductions, there is a high likelihood of rentals converting to monthly leases or monthly rent increases. A People Power Party official noted, “It’s akin to entering a cycle of viciousness like during the Moon Jae-in government.”,
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, ‘The opposition party also pointed out the absence of housing supply measures as an issue. With all of Seoul designated as a regulated area, expectations for redevelopment and reconstruction led by the private sector have dwindled. An opposition official commented, “The strong regulation suggests that there will be no housing supply under this government,” adding that “blocking young people’s opportunities for asset building will lead to significant political repercussions, especially among the moderates.”‘,
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, ‘The Democratic Party is exhibiting a cautious stance. Given that the success or failure in next year’s local elections may depend on the outcomes of this real estate policy, they are watching the market’s reaction. Moon Geum-joo, the floor spokesperson of the Democratic Party, stated, “We will support the government’s measures to ensure they are effectively implemented,” while holding back further comments. A Democratic Party member of the National Assembly’s Land, Infrastructure and Transport Committee mentioned, “A land transaction permit system doesn’t halt transactions altogether,” and emphasized the need to observe how well the government’s measures are executed.’