Hong Ji-sun, the nominee for Minister of Land, Infrastructure and Transport, has officially endorsed the government's plan to increase the tax burden on high-value homes and non-resident homeowners. She also outlined her vision to reshape the housing market to focus on actual residents and to rapidly increase supply for genuine demand.
In written responses submitted to the National Assembly's Land, Infrastructure and Transport Committee on September 14, Hong stated, "I agree with the direction of the real estate tax reform aimed at normalizing the real estate tax system and forming a housing market centered on actual residents."
However, she emphasized the need to consider market impacts during the tax reform process. Hong explained, "The reform of the real estate tax system should be examined with careful consideration of various aspects, including fair taxation, tax equity, and the effects on the housing market."
Regarding housing supply priorities, Hong stressed the importance of actual residents. She said, "Housing is a limited resource, so it should be prioritized for actual residents."
She also raised the need to restructure the rental market. Hong noted, "The current rental market structure excessively relies on individual multiple homeowners," and suggested that to ensure housing stability for low-income households, there should be continued expansion of public rental housing and support for corporate rental businesses. This indicates a shift from a private multiple homeowner-centric rental supply structure to a more public and corporate rental focus.
Hong expressed conditional support for easing regulations on reconstruction and redevelopment to expand housing supply in urban areas. She stated, "To increase housing supply in urban areas, it is necessary to relax excessive or unreasonable regulations on reconstruction and redevelopment."
However, she also made it clear that any easing of regulations should be carefully managed to avoid market instability. She said, "It is necessary to examine the impact of regulatory easing on the housing market to ensure that supply expansion and market stability can be harmonized."
Improving systems to reduce supply delays was also highlighted as a key task. Hong assessed that "thorough project management, including shortening construction and approval periods and expediting compensation, is crucial."
She particularly emphasized the need to amend the Public Housing Special Act to accelerate the supply of public housing. Hong stated, "Amendments to the Public Housing Special Act, which would allow for compensation plans to be announced when an area is designated before the completion of basic investigations, should be swiftly pursued to implement the shortest construction model."
After being nominated as a ministerial candidate, Hong had previously stated her commitment to quickly supply quality housing in preferred locations, indicating her intention to work closely with Seoul City on housing supply policies. Following the government's supply measures announced on August 13, securing new sites, adjusting redevelopment regulations, and collaborating with Seoul City are seen as major tasks for Hong.
Hong's responses reaffirm the government's dual approach to housing policy: suppressing speculative demand through tax increases and accelerating supply through regulatory easing and streamlined public land procedures.
However, increasing the tax burden on non-resident homeowners and easing regulations on redevelopment are both issues with significant market implications. The impact of increased tax burdens on the rental market, the potential for regulatory easing to stimulate housing prices in Seoul, and the backlash from landowners due to expedited public housing compensation procedures are expected to be contentious topics in upcoming hearings and policy implementation.
* This article has been translated by AI.
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