Gyeonggi Province Governor Lee Jae-myung, a preliminary candidate for the Democratic Party’s presidential election, announces real estate policies at the National Assembly Communication Hall on the 3rd. Reporter Yoon Chang-wonGyeonggi Province Governor Lee Jae-myung, a candidate for the Democratic Party’s presidential election, announced on the 3rd, “We will supply more than 2.5 million housing units nationwide within the term of office, of which 1 million units will be supplied as basic housing.” The governor proposed to utilize existing liquidity funds through loans secured by public rental housing as the most-questioned financing plan.
Governor Lee announced the basic housing policy as the second pledge of the ‘basic series’ at the National Assembly on the same day.
The governor explained that the basic housing is “a high-quality, large-sized public housing in a good location, such as near a train station, that anyone, including the middle class, can live for a lifetime for more than 30 years at a low rent at the level of construction cost.” There are two types: the sale-only type, which sells only the building, and the rental type, which also leases the building.
“In order to stabilize house prices and prevent the homeless from suffering, it is necessary to expand the supply and curb speculative and fearful demand,” said Governor Lee.
“Currently, long-term public rental housing for more than 30 years is a target to avoid due to its narrow area, bad location, and poor housing conditions,” said Governor Lee. This is the target including land lease sales.
Gyeonggi Province Governor Lee Jae-myung, a preliminary candidate for the Democratic Party’s presidential election, announces real estate policies at the National Assembly Communication Hall on the 3rd. Reporter Yoon Chang-wonAt a press conference regarding financial resources, the governor said, “It can be done without financial or financial burden.” Specifically, the governor explained, “If you consider the cost of building a house plus the cost of construction, it is usually around 10 million won per pyeong.
He continued, “If you use modern financial techniques, it’s very simple, but you can make it.” After constructing a public rental apartment, borrowing money as collateral, and institutions suggesting a method of borrowing interest with rent. Governor Lee emphasized, “If you raise money with collateral without incurring any losses and build it again with collateral, you can actually do it with almost no financial or financial burden. You can make full use of the market funds.”
Also, he added, “There are several methods, such as issuing public bonds, creating a fund, or issuing asset-backed securities called ABS (Asset Backed Securities),” he added.
Reporter Lee Han-hyungAt the same time, the governor will introduce a land ownership tax, in which the entire amount of tax is paid as basic income in local currency, to realize the concept of land disclosure, block real estate speculation, alleviate income polarization, support sales of local and regional small businesses, and revitalize the economy. We need to reduce the effective holding tax, which is only 0.17%, and gradually increase it to the 1% level,” he said.
This is because it is determined that tax resistance can be reduced by imposing a land ownership tax, a corrective tax to block real estate speculation, and distributing it as a basic income to the public. However, the governor explained, “We will avoid double taxation of land property tax and property tax with land ownership tax.”
Governor Lee also pledged to introduce a real estate blank trust system, saying, “The completeness of real estate policy will increase and public trust will increase, if high-ranking public officials who affect real estate prices are prevented from making money from real estate.” Just as a blank trust system for stocks is currently implemented for high-ranking public officials, the real estate sector will also introduce a blank trust system.
In addition, they expressed their will to introduce a system to prevent conflicts of interest by restricting the appointment and promotion of non-essential real estate owners to senior positions and introducing a real estate acquisition review system for public officials. He also said, “As a double or triple measure for the normalization of the real estate market, we will implement a pre-sale price cap system, a pre-sale price disclosure, and a post-sale system.”
The branch also promoted the establishment of a public housing management agency. He said, “Housing construction institutions such as LH have difficulty in owning more than a certain amount of public housing due to the debt ratio, and this is one of the reasons why the ratio of long-term rental housing does not increase.” The idea is to allow long-term management and holding of rental housing.
In addition, he promised to establish a Ministry of Housing and Urbanism or Housing Administration to comprehensively and exclusively implement land and housing policies and establish a real estate supervisory authority to establish order in the real estate market.
In addition, Governor Lee emphasized, “According to the principle of open farmland, farmland will be owned only by farmers and real growers.” .
