On the 3rd, Gyeonggi Governor Lee Jae-myung, a candidate for the Democratic Party’s presidential election, announced on the 3rd, “We will supply a total of 2.5 million housing units, including 1 million basic income households, during the presidential term, implement a pre-sale price cap and post-sale system, and disclose the sale price.”
Governor Lee made this statement by holding a press conference at the National Assembly on the same day and announcing the third policy promise. On the 22nd of last month, Governor Lee announced his representative pledge of ‘basic income’ at a press conference, and on the same day, he also announced a real estate pledge focusing on the supply of basic housing and real estate reform.
“In order to stabilize house prices and prevent the homeless from suffering, we need to expand the supply and curb speculative and fearful demand,” said Governor Lee. Basic housing is a policy envisioned by the governor from Gyeonggi-do, and refers to public housing in downtown areas where non-homeowners can live for more than 30 years at a low rent, not for the low-income class but for the middle class. The branch has set a target of supplying more than 1 million basic housing units and 2.5 million units including this.
“No matter how good the policies are, if the market distrusts them, they are of no use,” the governor said. It announced that high-ranking public officials would trust real estate and would introduce the ‘real estate acquisition review system’, which examines whether public officials above a certain rank or executives and employees of public institutions acquire real estate. He also said that he would not hire people who own ‘non-residential houses’ or ‘non-essential speculative real estate’ as high-ranking public officials.
In addition, he said that he would push ahead with the measures suggested by progressive real estate experts, such as the price ceiling system, the post-sale system, and the disclosure of the sale price. The purpose is to prevent the builders from disclosing the pre-sale cost in the process of supplying housing, and to prevent the price of apartments from being high.
The governor also announced that the Ministry of Housing and Urbanism (tentative name) would be established, an exclusive body to firmly realize the concept of land disclosure and systematically implement land and housing policies. In addition, the Korea Land and Housing Corporation (LH) said that it would focus only on the construction of public housing and set up a separate management agency to manage long-term public rental housing. In addition, the Real Estate Supervisory Service, promoted by President Moon Jae-in, was included in the pledge.
The ‘basic income land tax (land ownership tax)’ mentioned when announcing the basic income pledge was also included in the real estate pledge. Governor Lee said, “To prevent real estate speculation, we need to reduce the land transaction tax and increase the effective retention tax rate from only 0.17% to 1%.
The governor will also strengthen the burden and restrictions on speculative housing and non-essential real estate instead of easing the tax burden, financial restrictions, and transaction restrictions on residential housing and essential real estate, and eradicate illegal farmland speculation through a complete investigation. said he would