New Minister Hong Ji-sun Begins Tenure with Focus on Housing Supply

Hong Ji-sun officially began her duties as the new Minister of Land, Infrastructure and Transport on September 22. Her first site visit was to the Bucheon Daechang public housing district, part of the third new town initiative, highlighting the government's priority to swiftly connect housing supply plans with actual construction and occupancy.

According to the Ministry of Land, Infrastructure and Transport, Minister Hong visited the Bucheon Daechang public housing district in Gyeonggi Province on the afternoon of September 22. By choosing a third new town for her inaugural site visit, it appears she aims to emphasize the importance of executing housing supply policies from the outset of her tenure.

"The execution of housing supply is more important than planning," Hong stated, stressing the need for meticulous management of project schedules and processes, including applying the shortest construction model to the third new towns.

On the same day, President Lee Jae-myung approved Hong's appointment, marking a transition to a new leadership at the ministry. This came just a day after the National Assembly's Land, Infrastructure and Transport Committee adopted a report on her confirmation hearing with bipartisan agreement. The report included both the Democratic Party's approval and the People Power Party's disapproval.

Hong is recognized as a 'field-oriented bureaucrat' with nearly 28 years of experience in roads, railways, and construction in Gyeonggi Province, having served as the Director of Urban Housing, Deputy Mayor of Namyangju, and Second Vice Minister of the Ministry of Land, Infrastructure and Transport.

When she was nominated by the presidential office on August 30, it was highlighted that she has extensive experience from the design of housing supply policies to their on-the-ground execution. At that time, Chief of Staff Kang Hoon-sik remarked, "During her tenure as Director of Urban Housing in Gyeonggi Province, she oversaw the entire process from policy design to field execution, achieving tangible results in housing stability. We expect her to quickly supply sufficient housing in desired locations for the public."

Securing the execution capability of housing supply measures is identified as Hong's top priority. With the government already announcing large-scale supply targets and public land and urban supply plans centered around the metropolitan area, accelerating the pace of projects stalled by permitting, compensation, and construction is crucial to translating planned quantities into actual supply.

The government aims to initiate an average of 270,000 new homes annually in the metropolitan area, totaling 1.35 million by 2030, through its 'Housing Supply Expansion Plan.' The Korea Land and Housing Corporation (LH) will directly implement public land projects, utilizing underused urban areas such as old rental housing, public offices, and school sites.

Ensuring the smooth execution of the 'Housing Stability Plan' announced the previous day is also a challenge. The ministry plans to supply 1.19 million public housing units, including public rentals, public sales, and publicly supported private rentals, by 2030, with 77% or 920,000 units concentrated in the metropolitan area. This includes 350,000 construction-type public rentals, 310,000 purchase rentals, and 230,000 lease rentals, along with 243,000 public sales units.

Hong faces numerous pressing issues right from the start of her tenure. She must decide whether to extend the land transaction permit zones in Seoul and parts of Gyeonggi Province, which are set to expire at the end of the year. During her confirmation hearing, she indicated that she would make a decision based on market conditions and discussions with relevant ministries.

Coordinating policies with local governments, such as Seoul, is also crucial. Hong stated during her hearing that while the principle is to convert the site of the Yongsan U.S. military base into a park, she is open to exploring housing supply possibilities for youth and future generations. However, she emphasized that this would depend on consultations with the Seoul city government and building public consensus, making collaboration with local governments essential in identifying potential urban supply sites and advancing projects.

Additionally, significant issues await her attention, including the construction industry's downturn, unsold properties in rural areas, construction site safety, national railway network development, traffic congestion in the metropolitan area, and the second relocation of public institutions. Observers are keen to see how Hong, who previously served as the Second Vice Minister, will integrate her experience in transportation and social overhead capital with housing and land policies.