Kim Yong-beom: "We Have to Build, No Matter What" ... Stresses Expanding Housing Supply

Kim Yong-beom, chief policy secretary at the Blue House, said on the 24th that, in relation to housing supply, "We have to build homes, no matter what." He added, "There are also many closed schools, and we are trying to thoroughly identify every possible site in the public sector where housing can be built." On adjustments to real estate taxes, including property taxes, he said, "We want to set them at a level that people can accept."
At a Kwanhun Club forum held that day at the Korea Press Center in Jung-gu, Seoul, Kim said he "fully agreed" with a question calling for expanded housing supply. He also stressed that "the central government and the Seoul Metropolitan Government need to put their heads together."
Kim noted, "The places I have mentioned several times are the industrial zones in Yeongdeungpo and Guro District. When I asked why homes could not be built there, I was told that Seoul needs to maintain a manufacturing base." He went on to say, "That is also connected to who takes the lead in drawing up the plan, so I believe we need to discuss extraordinary measures that can truly increase supply."
In response to claims that home prices rise even more under progressive governments, he pushed back, calling it "a lazy observation." He explained that during the Roh Moo-hyun administration, the aftermath of the foreign exchange crisis caused many construction firms and financial institutions to collapse, creating a severe housing supply shortage. During the Moon Jae-in administration, he said, housing supply was not particularly low, but the sharp expansion in liquidity after COVID-19 increased upward pressure on home prices. His point was that real estate prices should be viewed in light of supply and demand, as well as broader macroeconomic conditions, rather than simply the progressive or conservative leanings of a government.
On tax issues such as higher property holding taxes, he said, "The government needs to study the issue and find a reasonable solution." He signaled a cautious approach to any decision. Asked about remarks that President Lee Jae-myung had said during the election campaign that he would not try to curb home prices through taxes, Kim said, "Real estate accounts for the largest share of the assets owned by the entire nation, and it carries enormous importance." He added, "From the perspective of stable management, taxation is naturally one of the important issues." Still, he said, "We will listen to a wide range of opinions, including from people with direct interests and even Mom cafe communities, and if necessary, hold public forums and go through that process before making policy decisions carefully."
cjk@fnnews.com Choi Jong-geun Reporter