**Countermeasure with the Reconstruction Promotion Act**
Kwon Seong-dong: “Recovery of the construction industry is urgent”
Opposition: “100% agreement on revitalizing reconstruction if residents’ housing rights are guaranteed”
**◆ Ruling and Opposition Parties Target Real Estate Voters ◆**
As Lee Jae-myung, the leader of the Democratic Party of Korea (DPK), seeks to capture real estate votes by expanding inheritance tax deductions, the People Power Party (PPP) has introduced the Reconstruction and Redevelopment Promotion Act. This move aims to breathe life into construction, thereby creating a domino effect that heats up related sectors like steel and cement. It also aims to revitalize the employment market and stabilize house prices in the capital region.
On the 21st, Kwon Seong-dong, the floor leader of the PPP, stated during a policy meeting, “Reviving the construction industry is reviving people’s livelihoods,” and added that “the key to recovery in the construction industry lies in reconstruction and redevelopment.”
After announcing the supply measures on August 8 last year, the government and the PPP have been pushing for the enactment of the Reconstruction and Redevelopment Promotion Act. The Act aims to streamline major procedures of redevelopment and reconstruction, potentially reducing timelines by up to three years, and to enhance business viability by easing restrictions on floor area ratios. The goal is to increase housing supply within urban areas by accelerating the pace of construction through flexible approval processes.
Kwon emphasized, “This law is a core livelihood bill aimed at catching two rabbits—reviving the construction industry and stabilizing the real estate market—with expanded support for redevelopment and reconstruction,” while noting that “the DPK, the majority in the National Assembly, is hindering its passage.”
He further argued, “There are many areas even in the provinces that demand redevelopment and reconstruction. If the DPK opposes this law as a ‘Seoul privilege law,’ they are effectively nailing shut the coffin for regional development. If the DPK is sincere about economic recovery, I urge them to cooperate in swiftly enacting the Reconstruction Promotion Act.”
Kwon also mentioned that some DPK lawmakers from the capital region are personally in favor of the act, but are unable to express their opinions due to opposition from the party leadership. He urged Lee Jae-myung not to gag his party members.
Meanwhile, the DPK has shifted the blame for the lack of progress on the bill’s passage to the government and the ruling party. Last November, during discussions on the Reconstruction and Redevelopment Promotion Act, they requested measures to guarantee residents’ housing rights, which, according to them, have been met with silence. Moon Jin-seok, a DPK lawmaker and opposition secretary of the National Assembly’s Land, Infrastructure and Transport Committee, stated in a phone interview with Maeil Business News, “We 100% agree on the need for housing supply and the activation of redevelopment and reconstruction,” but added, “It must also include assurances for the stable housing rights of existing residents.” Without at least minimal safeguards, the reconstruction and redevelopment process could threaten the housing rights of residents.
Moon suggested that solutions are needed to reduce negative impacts from redevelopment or reconstruction, such as imposing mandatory affordable rentals.
[Reporters: Kim Myung-hwan, Sung Seung-hun, Park Ja-kyung]