Young people, pre-application winners, and the housing supply industry are urging the government to restore the housing ladder that leads to homeownership and unblock supply routes. They called for clarity on pre-application loan conditions and the removal of bottlenecks in the approval and financing stages. The government responded by committing to fulfill existing promises and to specifically address unreasonable application and loan regulations as well as on-site challenges.
On July 27, a national discussion on real estate policy was held at the Korea Chamber of Commerce and Industry in Seoul, chaired by Prime Minister Han Seong-sook. This meeting was organized to gather additional input from young people, newlyweds, and the supply industry, following a discussion led by President Lee Jae-myung on July 23 that did not fully address their concerns.
A representative from the New Home Sharing and Selection Pre-Application Emergency Response Committee stated, "Homebuyers who have been waiting for government announcements are struggling with contract difficulties due to uncertainties in loan conditions," urging the government to implement the previously announced fixed-rate policy mortgage and confirm key financial conditions before contracts.
Young attendees emphasized the need for a predictable housing ladder that allows movement from rental to homeownership, not just the provision of affordable housing. They also called for reforms to prevent disadvantages in applications and loans due to marriage and life cycle changes.
The supply industry proposed revising legal standards to reduce disputes over non-apartment sales contracts and introducing integrated reviews for converting knowledge industry centers into residential officetels. They requested selective financial support, citing difficulties in funding even viable projects due to bridge loans and project financing (PF) constraints.
Minister of Land, Infrastructure and Transport Kim Yoon-deok stated, "We will transition from a sequential to a parallel processing system for approval procedures," adding that they will significantly shorten approval times through one-stop support for use changes and integrated reviews.
Regarding the issues faced by pre-application winners, he emphasized that "the fundamental principle is to accurately implement what the government promised," and announced plans to hold discussions with winners soon to establish specific adjustment measures.
The government aims to alleviate bottlenecks in supply while maintaining a cautious stance on uniformly relaxing regulations for private redevelopment projects that could stimulate housing prices. Minister Kim explained that indiscriminately increasing private floor area ratios could provoke short-term market instability, necessitating thorough public discourse and a refined approach.
Prime Minister Han Seong-sook acknowledged the anxiety and financial burdens faced by pre-application winners due to changes in loan conditions, stating, "We take this matter very seriously and will examine on-site challenges one by one as directed by the President."
The government has identified 12 cases needing improvement related to the so-called 'marriage penalty' that disadvantages individuals in applications and loans due to marriage. Additionally, over 20 proposals submitted on online forums are currently under investigation by relevant ministries.
Prime Minister Han pledged, "We will boldly address unjust victim cases and regulatory obstacles raised both on-site and online, and we will establish improvement measures that the public can feel through cooperation with relevant ministries and a one-stop support system."
* This article has been translated by AI.
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