Kim Yong-beom on the housing problem: "We just need to build, and if property tax reform is needed, let's hold a public debate"

[Financial News] Kim Yong-beom, Chief Presidential Secretary for Policy at the Blue House, said on the 24th that, in relation to the real estate problem, "we just need to build," stressing that expanding supply is urgent.
At a forum hosted by the Kwanhun Club at the Korea Press Center in Jung District, Seoul, Kim said he fully agreed with a question about the need to expand housing supply. He added, "I completely agree."
Kim said, "Real estate, especially the housing problem in the Capital Region, is difficult," adding that "supply and demand are the most important factors." He went on to explain, "Starting with Project Finance in 2023 and 2024, supply was extremely difficult. Companies involved in supply suffered throughout those two years, so preparations for supply were insufficient."
Kim said that supply had been prepared at a level 30 to 40 percent lower than usual, and that "the result is showing up now, two to three years later." He added, "In 2026, 2027 and 2028, things that were not prepared two or three years ago cannot suddenly appear," saying that the period when supply and demand were structurally strained for two to three years is now producing its effects.
He also raised the issue of using industrial zones in Seoul. "In areas like Yeongdeungpo and Guro District, there are many old industrial complexes," he said. "When I asked why housing could not be built there, I was told that Seoul's manufacturing base must be maintained," he noted, referring to policy differences with the Seoul Metropolitan Government. He added, "There are also many closed schools, and among the public-sector sites, we are trying to find every possible place where housing can be built." Kim said, "That is something we can keep saying in the future," but added that it is also linked to "who takes the lead in drawing up this plan."
Kim questioned the delays in large-scale supply in the Capital Region caused by local opposition and the green belt, saying, "If everyone opposes it like that, where are young people supposed to live?" He stressed that the central government and the Seoul Metropolitan Government must work together, adding that they should discuss extraordinary measures to expand supply.
On property tax policy, he said, "Real estate accounts for the largest share of household assets, and taxation is also an important issue," adding that "we are running simulations hundreds of times" on tax reform.
Kim said, "We are trying to hear a wide range of opinions, including from people with direct interests and members of Mom cafe communities," adding that "if necessary, we will even hold public debates and make policy decisions carefully."
Asked how transaction and holding taxes should be fine-tuned, he said, "It differs by country, and in the United States, holding tax also varies by state." He added, "Taking into account that each country has its own institutional characteristics, we will set it at a level that people can accept."
The government is expected to unveil a comprehensive real estate package in July that combines tax and supply policies. To that end, it is also pushing to hold a real estate forum in mid-July with the participation of various stakeholders and the public. Earlier, President Lee Jae-myung said at a press conference marking his first anniversary in office, held on the 8th at the Yeongbingwan State Guest House in the Blue House, that the government would overhaul the overall property tax system in July and also prepare supply measures through reconstruction and redevelopment.

cjk@fnnews.com Choi Jong-geun Reporter