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“Be careful not to stimulate house prices”… Hee-Ryong Won raises the prudence of deregulation for reconstruction and redevelopment

picture explanationWon Hoe-ryong, Minister of Land, Infrastructure and Transport [사진 = 연합뉴스]

Won Hee-ryong, candidacy for the Minister of Land, Infrastructure and Transport, said, “We will approach the easing of regulations on reconstruction and redevelopment carefully and precisely so as not to stimulate house prices.”

Candidate Won Hee-ryong made this statement in response to the personnel hearing submitted to the National Assembly on the 30th. In response to a question by Park Sang-hyeok of the Democratic Party of Korea about his position on ‘President-elect Yoon Seok-yeol’s pledge to ease the reconstruction and redevelopment regulations, easing the redevelopment and reconstruction regulations may have the side effect of making prices unstable. “It is necessary to take a careful and sophisticated approach, carefully considering the market situation so that there is no stimulus to house prices,” he said.

Previously, President-elect Yoon Seok-yeol, during his presidential campaign, promised to rationally adjust the standards for safety diagnosis for reconstruction, and offered to exempt safety inspections for old apartments built more than 30 years ago. However, as house prices in the first-phase new towns rose as expectations for easing regulations related to reconstruction and other maintenance projects immediately after the election, the Presidential Transition Committee and the government are adjusting the speed of deregulation in order not to stimulate house prices.

In response to the same day, Candidate Won said, “There is a need to rationally improve safety diagnosis standards to promote supply in the city center, but since there are many apartments subject to safety diagnosis, it can have a big impact on the market. We plan to do it,” he said.

Candidate Won added, “I think it is necessary to properly recover excessive capital gains or development profits generated during reconstruction and redevelopment.”

In each of the inquiries related to the sale price ceiling system and the comprehensive real estate tax, they said, “I know that some side effects have occurred, such as a decrease in sales in some areas.” I think it is necessary to normalize the tax burden to an appropriate level depending on the plan.”

Regarding the plan to abolish the estate tax or integrate the property tax, he said, “Under the broad policy goal of housing stability, we will come up with a rational tax reform plan together with the tax authorities by comprehensively considering various aspects such as the housing market situation, taxation efficiency and equity, and tax revenue.”

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