Ruling and Opposition Parties Prepare for 'Real Estate War'... Competing to Expand Housing Supply

[Financial News] The ruling and opposition parties are preparing for a 'real estate war' with next June's local elections in mind. The Democratic Party of Korea (DPK) has formed the 'Housing Market Stabilization Task Force (TF),' while the People Power Party has established the 'Special Committee for Normalization of Real Estate Policy.'
The DPK first drafted the TF formation plan on the 21st and plans to report and approve it at the Supreme Council meeting on the 22nd. Led by Policy Committee Chair Han Jeoung-ae, the TF will include lawmakers with at least two terms. As an organization to support the real estate policies of the Lee Jae Myung administration, including the October 15 Real Estate Measures, it will counter criticisms led by the People Power Party and propose supplementary measures.
The TF is designed to prevent backlash against the government's real estate policies. For this reason, it has made it clear from the outset that it will not discuss real estate taxation, which is highly sensitive to public opinion. Kim Hyun-jung, the DPK’s floor spokesperson, stated, “We will not discuss tax reforms such as property holding tax, but will focus on discussions aimed at stabilizing supply. We will closely monitor the three rounds of real estate measures and work to supplement them.”
The TF's immediate task is to announce, by the end of the year or early next year, detailed housing supply plans for each district in Seoul. The plan will specify how many units will be supplied in each district by which year. In addition, the DPK aims to significantly expand housing supply by promoting legislation to accelerate reconstruction and redevelopment.
Since expanding housing supply is planned, the DPK argues that previous demand-suppression measures, including the October 15 Real Estate Measures, were intended to prevent market overheating and buy time. This also serves as a rebuttal to the People Power Party’s criticism that such measures only made it harder for ordinary people to buy homes. Kim Hyun-jung explained, “With ample liquidity in the market, there were signs of overheating in the real estate sector, so demand-suppression measures were unavoidable. The government announced it would unveil supply measures by the end of this year, so these were interim steps to buy time.”
The People Power Party, under the direct leadership of Dong-hyuk Jang, will hold the first meeting of its special committee on the 22nd. By highlighting that real estate policies have failed and housing prices have soared under every progressive administration, the party aims to present alternatives, keep the government and ruling party in check, and use this as a springboard to recover approval ratings.
The party is mobilizing all its resources for this effort. The vice chair of the special committee is Policy Committee Chair Kim Do-eup, and members include Kim Eun-hye, Senior Deputy Floor Leader for Policy, as well as secretaries from the Land, Infrastructure and Transport Committee of the National Assembly, the Strategy and Finance Committee, the National Policy Committee, and the Education Committee of the National Assembly of the Republic of Korea. Cho Eun-hee, a lawmaker and former mayor of Seocho-gu, Seoul, and Shim Gyo-Eon, a professor of real estate at Konkuk University and former president of the Korea Research Institute for Human Settlements, will also participate to provide expert alternatives.
Previously, the People Power Party operated the 'Real Estate Market Stabilization Task Force (TF)' led by Kwon Young-jin. This TF has now been integrated under the special committee, which will continue to discuss the problems and alternatives identified in the Lee Jae Myung administration’s real estate measures.
The special committee is reportedly considering holding a protest demanding the suspension and revision of the government’s real estate policies. It also plans to soon hold a field roundtable in the Greater Seoul area to gather expert opinions. The aim is to present alternatives that address the shortcomings of the government’s real estate policies, with a focus on expanding supply.
Since both parties are putting forward expanded housing supply as their real estate solution, competition over supply alternatives is expected ahead of the local elections.
uknow@fnnews.com Kim Yun-ho, Lee Haeram, Kim Hyung-gu Reporter