Minister Hong Ji-sun: Housing Price Stabilization and Property Rights Must Be Weighed
Hong Ji-sun, the Minister of Land, Infrastructure and Transport, stated that the effects of the reconstruction excess profit recovery system (recovery system) on housing price stabilization and concerns over property rights should be comprehensively reviewed. During a National Assembly meeting on November 12, in response to questions about the necessity of abolishing the recovery system, she expressed a cautious stance, saying, "It is not a matter that can be judged as absolutely right or wrong." Recently, a notification was issued regarding a burden amount of 17.9 billion won for the Banpo Hyundai reconstruction project, leading to ongoing debates about the actual imposition and legal deadlines. The Ministry of Land, Infrastructure and Transport has requested a legal interpretation regarding the timing of the burden imposition. Regarding the Seoul housing market, Minister Hong assessed the increase in listings and decrease in transactions as signals of price declines. She noted the downward trend in the Gangnam area and the slowing rise in the outskirts of Seoul, suggesting that the decline could widen if interest rates rise by year-end. To stabilize the rental market, she pledged to continue expanding the supply of rental housing in the metropolitan area.
Daewoo Engineering Faces Challenges in Czech Nuclear Project Amid Mediation Stalemate
Daewoo Engineering's position is weakening following the breakdown of negotiations for a new nuclear power plant contract in Dukovany, Czech Republic. After failing to reach an agreement on contract terms with Korea Hydro & Nuclear Power, Daewoo requested public mediation from the Ministry of Trade, Industry and Energy, but the government clarified that it has no legal authority to intervene in commercial negotiations between companies. Korea Hydro & Nuclear Power stated that despite 91 discussions, including CEO meetings and working-level talks, they have not reached an agreement and are moving forward with the process of selecting a new contractor. Hyundai Engineering is also considering participation once the schedule and conditions for re-bidding are finalized. Daewoo is demanding renegotiation, citing significant loss risks if a fixed-price contract is signed without a completed basic design. The company expressed concerns that if their participation in the project falls through, it would inevitably disrupt their strategy for expanding overseas nuclear projects, having already invested hundreds of millions of won upfront. Korea Hydro & Nuclear Power plans to select a new contractor by July 2027 to meet the scheduled site stabilization date in January 2029.
Jin Air, Air Seoul, and Air Busan Merger Approved; 'Integrated Jin Air' Launching in March
Jin Air, Air Seoul, and Air Busan have received government approval for their merger, set to launch as 'Integrated Jin Air' on March 17, 2027. The Ministry of Land, Infrastructure and Transport announced on November 12 that the merger was approved under conditions including the establishment of a safe flight operation system and implementation of consumer protection plans. The merged airline is expected to become the largest low-cost carrier (LCC) in the country. Jin Air must complete safety operation system inspections and obtain approvals from foreign aviation authorities before the launch, with the Ministry monitoring compliance with related plans monthly. Busan will be developed as the second hub for the integrated airline, expanding international routes from Gimhae Airport from 28 to 33 and increasing weekly flight frequencies from 281 to 339. The existing infrastructure of Air Busan will be maintained, and the airport will be developed as an independent aircraft maintenance base, with plans for employee retention and no forced restructuring during the merger.
* This article has been translated by AI.
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