The President Opposed 'Public Rental Housing for Sale'... MOLIT Moves Toward Scaling It Back

The conversion of public rental apartments into sale units is a policy that President Lee Jae-myung also viewed negatively. At a State Council of South Korea meeting late last year, he even called for a fundamental shift in the policy framework. A change in tone is also being detected inside the Ministry of Land, Infrastructure and Transport.
■The president also asked, "Why sell rental housing?"According to industry sources on the 24th, MOLIT is reviewing the overall direction of housing policy. The timing of the report has not been set, but it is expected to include many of the points Lee raised.
That includes the direction of public housing conversion for sale discussed at the State Council of South Korea meeting on Dec. 16 last year. At the time, Lee told MOLIT, "Why do you keep converting rental housing into sale units and selling them off?" He added, "Isn't there an assumption that even long-term rental housing will someday be sold?"
MOLIT has decided to focus on securing and maintaining Public Rental Housing. As a result, the volume of rental housing convertible to sale is likely to decline in the future. About five new rounds of supply are expected this year. According to Korea Land and Housing Corporation (LH), the first supply of rental housing convertible to sale this year is scheduled for June, with more than 1,600 households planned. Additional supply is set for August, September, October, and December.
The problem is that even if the housing policy direction changes, there will still be planned public housing conversion for sale units over the next few years. These residents moved in with a promise that their homes would eventually be sold to them. With apartment prices having risen sharply recently, the potential for disputes remains. An official from the real estate industry said, "House prices keep moving even while disputes drag on, so the longer it takes, the worse the conflict becomes," adding, "A fundamental solution is needed."■"Public housing should be limited to permanent rental housing"There are also calls to create a new consultative body to mediate disputes. A Dispute Mediation Committee already exists, but it is operated by local governments and has no legal authority, making it largely ineffective. Kim Ho-cheol, dean of the Dankook University Graduate School of Real Estate and Construction, said, "The priority should be to strengthen the expertise of its members so that a central consultative body can function effectively," adding, "Administrative authority should also be reinforced accordingly."
Another real estate expert, who asked not to be named, said, "The sale-conversion model should now be handed over entirely to the private sector, and the public sector should handle only permanent rental housing," calling it "the most fundamental solution."
Some also say separate financial support is needed. Seo Jin-hyung, president of the Korea Real Estate Management Association, suggested, "Some tenants may find the sale-conversion price burdensome or have difficulty securing financing. For them, financial support should be expanded, including exceptional loan access."
kjh0109@fnnews.com Kwon Jun-ho Reporter