Lee Seong-hoon, president of the Korea Land and Housing Corporation (LH), stated that loan regulations are necessary for the time being to stabilize the housing market. He explained that it takes time for increased supply to translate into actual occupancy, and that loan regulations should be implemented to curb rapid price increases. He emphasized the need to prioritize housing sales to meet homeownership demand over the next two to three years.
During a luncheon meeting on September 30 at the Yongin Advanced System Semiconductor National Industrial Complex, Lee responded to a question about measures to stabilize the housing market, saying, "I believe that loan regulations are necessary right now."
He added, "LH is mobilizing all its resources to secure unprecedented quantities and quality in terms of housing supply in terms of volume, speed, and location," and noted that there will inevitably be a time lag in housing supply, which is why he thinks loan regulations are needed at this time.
In response to concerns that loan regulations make it difficult for genuine homebuyers to purchase homes, he acknowledged the need to consider the burden of rising home prices. Lee remarked, "When loan regulations are implemented, there are concerns about 'kicking away the housing ladder,' and those looking to buy homes now may be worried. However, I believe it is better to have a certain level of loan regulation to ensure that housing prices move steadily rather than experiencing sharp rises and falls."
He further stated, "Many people are trying to buy homes competitively with first-time homebuyer loans, but we need to consider whether this continuous rise in home prices benefits our community."
Addressing criticisms that the government's housing stability plan is overly focused on rental housing, which diminishes the effectiveness of sales supply, Lee announced a commitment to prioritize sales supply for the time being. He said, "I share the view with the government that sales will be more important over the next two to three years. While we will need universal rental housing in the long term, we plan to focus on sales to meet homeownership demand right now."
He added, "In the next three years, we will supply nearly 100,000 units in new towns, and by 2028, we aim to supply at least 30,000 units, which will be the highest level compared to the first-generation new towns like Bundang. Universal rental housing will be fully implemented afterward, so there is no need to worry about the supply of sales units."
Regarding this year's construction goals, he expressed confidence in achieving them by the end of the year. He noted, "Many units are currently in the permitting process, which tends to concentrate in the fall. While it may seem sluggish now, we will complete the necessary permits and achieve our construction goals by December."
During the organizational restructuring process at LH, he stated that they will protect employee welfare and secure the necessary personnel and budget for supply operations. Lee said, "We are demanding that there be no disadvantages to employees' treatment and salaries during the restructuring process, and the government has indicated it will increase budget support and reinforce personnel and organization to ensure there are no issues with housing supply."
He concluded, "We are currently discussing personnel and budget reinforcement with the government, and there will likely be an announcement from the government soon. We will strive to achieve both LH reform and housing supply objectives."
During a luncheon meeting on September 30 at the Yongin Advanced System Semiconductor National Industrial Complex, Lee responded to a question about measures to stabilize the housing market, saying, "I believe that loan regulations are necessary right now."
He added, "LH is mobilizing all its resources to secure unprecedented quantities and quality in terms of housing supply in terms of volume, speed, and location," and noted that there will inevitably be a time lag in housing supply, which is why he thinks loan regulations are needed at this time.
In response to concerns that loan regulations make it difficult for genuine homebuyers to purchase homes, he acknowledged the need to consider the burden of rising home prices. Lee remarked, "When loan regulations are implemented, there are concerns about 'kicking away the housing ladder,' and those looking to buy homes now may be worried. However, I believe it is better to have a certain level of loan regulation to ensure that housing prices move steadily rather than experiencing sharp rises and falls."
He further stated, "Many people are trying to buy homes competitively with first-time homebuyer loans, but we need to consider whether this continuous rise in home prices benefits our community."
Addressing criticisms that the government's housing stability plan is overly focused on rental housing, which diminishes the effectiveness of sales supply, Lee announced a commitment to prioritize sales supply for the time being. He said, "I share the view with the government that sales will be more important over the next two to three years. While we will need universal rental housing in the long term, we plan to focus on sales to meet homeownership demand right now."
He added, "In the next three years, we will supply nearly 100,000 units in new towns, and by 2028, we aim to supply at least 30,000 units, which will be the highest level compared to the first-generation new towns like Bundang. Universal rental housing will be fully implemented afterward, so there is no need to worry about the supply of sales units."
Regarding this year's construction goals, he expressed confidence in achieving them by the end of the year. He noted, "Many units are currently in the permitting process, which tends to concentrate in the fall. While it may seem sluggish now, we will complete the necessary permits and achieve our construction goals by December."
During the organizational restructuring process at LH, he stated that they will protect employee welfare and secure the necessary personnel and budget for supply operations. Lee said, "We are demanding that there be no disadvantages to employees' treatment and salaries during the restructuring process, and the government has indicated it will increase budget support and reinforce personnel and organization to ensure there are no issues with housing supply."
He concluded, "We are currently discussing personnel and budget reinforcement with the government, and there will likely be an announcement from the government soon. We will strive to achieve both LH reform and housing supply objectives."
* This article has been translated by AI.
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