“Construction Industry Situation is Critical, Government’s Measures are Insufficient… Be Bold, Not Cautious”
Kim Sang-hoon, Chairman of the Policy Committee of the People’s Power Party, speaks at a field meeting aimed at overcoming the crisis in the steel industry, held at Posco Cheongsondae in Pohang, Gyeongsangbuk-do. March 5, 2025.
(Seoul=Yonhap News) Reporters Hong Ji-in and Cho Da-woon – The People’s Power Party on the 11th urged the government to take proactive measures for the construction economy, such as easing the Debt Service Ratio (DSR) lending regulations for regions outside the capital and temporarily revising real estate taxation.
Policy Committee Chairman Kim Sang-hoon stated in a countermeasure meeting held at the National Assembly, “The current situation in the construction industry is truly alarming.” He noted that “the construction industry accounts for 15% of the GDP, and now construction companies are facing mass bankruptcies, court management applications have surged, and employment in the construction sector is rapidly decreasing.”
Chairman Kim criticized the government by saying, “The government’s measures are mere inadequate stopgap measures,” and pointed out that “it’s not the time for the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, and related ministries to be overly cautious given the severe situation of the construction industry.”
He emphasized, “Considering unresolved housing issues outside the capital, it is time to boldly ease DSR lending regulations,” and added, “Even if temporary, the government should decisively consider revising the real estate taxation for areas outside the capital.”
He continued, “Given the current state of affairs, it’s understandable that department heads may be cautious, worried about unforeseen risks landing responsibility on themselves or their departments,” but reiterated, “bolder measures need to be formulated and implemented.”