As the real estate market faces limited recovery due to supply constraints, tax burdens, and worsening financial conditions, experts are calling for simultaneous tax reform and innovation in private supply systems to restore the housing ladder and revitalize the market. They emphasize the need for a "two-way" solution that protects genuine demand without hindering normal transactions and supply.
The "2026 Real Estate Policy Forum," organized by Aju Economic Daily and the Global Economic and Financial Research Institute, took place at the Seoul Club in the Korea Press Center on June 24. The forum focused on evaluating the real estate policies of the Lee Jae-myung administration during its first year, examining the successes and limitations of tax and housing supply policies, and discussing future improvements. Attendees included officials from the Ministry of Land, Infrastructure and Transport, the real estate and construction industries, academia, and the financial sector.
Kwak Young-gil, Chairman of Aju News Corporation, opened the forum by stating, "The real estate market and construction industry are at another critical crossroads. I hope this forum will not only identify issues but also gather realistic alternatives and productive suggestions."
Woo Byeong-tak, a Premier Pathfinder Specialist at Shinhan Bank, presented on the direction and recommendations for reforming real estate taxation to protect genuine demand and address market distortions. He noted that while the real estate tax aims for market stability, it can also lead to side effects such as reduced transactions and a decrease in rental properties. He analyzed that the increased capital gains tax on multiple homeowners and strengthened holding taxes might lower asking prices in the short term but could also lead to stricter residency requirements and a decrease in rental supply, increasing tenant demand.
Kim Deok-rye, Head of the Housing Research Office at the Korea Housing Industry Research Institute, continued with a presentation on "Housing Supply of 1.35 Million Units + α and Innovations for Enhancing Private Vitality." He pointed out that while the current government has proposed supplying 1.35 million units in the metropolitan area, expanding urban housing supply, and supplementary measures for non-apartment housing, the actual market recovery has been slow. He highlighted that the 9·7 measures set a goal of supplying 1.35 million units in the metropolitan area over five years, and the 1·29 measures announced 60,000 new constructions for urban housing supply expansion and acceleration, but the on-the-ground experience has been limited.
The forum also emphasized the importance of private housing supply. Short-term challenges include establishing a foundation for rental housing supply, adjusting excessive loan regulations for housing demanders and suppliers, and improving land use and building standards to expand the use of non-residential facilities.
A panel discussion followed, moderated by Kwon Dae-jung, Chair Professor at Hanseong University. Panelists included Nam Hyuk-woo from Woori Bank, Lee Yoo-ri from the Ministry of Land, Infrastructure and Transport, Yoon Seong-jin from the Korea Research Institute for Human Settlements, and Ko Jong-wan from the Korea Asset Management Institute, who discussed policy directions for restoring the housing ladder and revitalizing the market.
Kim Yi-tak, First Vice Minister of the Ministry of Land, Infrastructure and Transport, stated in his address, "The most urgent task in the current housing market is stable housing supply. The government is focusing on normalizing stalled projects and improving conditions for private supply to reignite the dwindling housing supply."
Kim Jong-ho, President of the Korea Association of Realtors, remarked, "The real estate market is a key aspect of people's lives. I hope this forum will objectively assess the policy achievements of the past year and generate realistic alternatives for restoring the housing ladder and revitalizing the market."
* This article has been translated by AI.
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