He dismissed claims that real estate prices rise under progressive governments as "lazy observation," arguing that the situation must be viewed in light of housing supply shortages and a booming economy.
Speaking at the Kwanhun Club discussion held at the Press Center in Jung-gu, Seoul, Kim said, "Real estate is the biggest concern."
He emphasized the importance of supply, noting, "Starting from 2023 and 2024, we have seen difficulties in project financing due to high interest rates, which has affected supply. Companies involved in housing supply have all been suffering, leading to inadequate preparation for supply."
Kim pointed out that housing supply has decreased by about 30-40% compared to previous years, stating, "The results of the difficulties in housing supply over the past four years are now becoming evident."
He added, "Demand is currently at its strongest point compared to two or three years ago, and the combination of housing supply shortages and economic boom presents a very challenging situation."
Kim called for cooperation with opposition parties to expand housing supply, raising concerns about where young people will live if all departments oppose measures related to land use and regulatory easing.
He stressed the need for discussions with the central government and the special metropolitan area of Seoul regarding issues like the release of greenbelt land.
Kim noted that areas like Yeongdeungpo and Guro have many industrial zones, and when he asked the Seoul government why housing cannot be built there, he was told that a manufacturing base must be established in Seoul.
Regarding proposed measures to curb real estate demand through strengthened taxation, he said he would consider various opinions but remained cautious.
Kim remarked, "Rather than trying to control real estate through taxation, we must recognize that real estate constitutes the largest portion of national wealth. Taxation is an important topic, and we need to research and find rational solutions. We are running simulations related to the tax system hundreds of times and will listen to diverse opinions, including from online communities, and hold public discussions if necessary."
He also addressed the analysis that real estate prices rose during progressive governments, stating, "During the Roh Moo-hyun and Moon Jae-in administrations, real estate prices increased. In the case of the Roh Moo-hyun government, the housing supply was disrupted due to the foreign exchange crisis during the Kim Dae-jung administration, followed by a V-shaped recovery. The supply was at a cliff while demand exploded, similar to the current situation."
Kim noted that the Moon Jae-in administration recorded the highest annual housing supply, but the COVID-19 pandemic led to an expansion of liquidity.
He concluded that both housing supply and macroeconomic conditions are crucial, stating, "Currently, housing supply is difficult, and the macroeconomic situation is also challenging due to a boom."
* This article has been translated by AI.
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