Minister Kim Hyun-mee of the Ministry of Land, Infrastructure and Transport (MOLIT) speaks at a news conference on June 25 to look back at her first year in office. (Photos: MOLIT)

MOLIT Minister has a meeting with reporters at a restaurant of the Government Complex in Sejong City to look back her one year in office.

The government hinted the possibility of adjusting the supply of apartments in some areas by regulating house permits, because unsold apartments are on the rise in provincial districts. It would be the first time in Korea such a regulation on apartments supply would be imposed.
The government is taking steps to prevent an oversupply of apartments that could lead to a snowball effect of increasing unsold apartments, thus seeing jeonse or apartment deposit money surpassing apartment prices and undermining the livelihood of low-income earners.
While holding a news conference on June 25 to look back at her first year in office, Minister Kim Hyun-mee of the Ministry of Land, Infrastructure and Transport (MOLIT) said, “The real estate market is showing signs of stability overall this year, compared to last year when overheated real estate competition appeared.”
The ministry is considering taking steps to address an oversupply of apartments in some provincial areas, which could deal a blow to the livelihoods of low-income families, she noted.
Such cities as Gunsan, Geojae and Ulsan are experiencing double trouble – a sagging economy caused by a decline of their major industries – shipbuilding and automobiles – and a slumping real estate market, Minister Kim said. These problems can be solved only when the sagging industries are turned around, she added. The minister made it clear not to use housing policies as means to boost the economy.
The government will not consider such steps as the relaxing of regulations on apartment subscription to reinvigorate the regional economy, she said.
Take a look at precedents. There is a possibility that the MOLIT may take administrative guidance through local governments by stifling project financing requirements of the Korea Housing & Urban Guarantee Corp. (HUG) to reduce the issuance of apartment construction permits. The move would be designed so contractors find it hard to receive project financing loans from the HUG when they want build and sell apartments. In an effort to lessen the damage apartment renters suffer, she said, the ministry will let the HUG come up with more diverse products to guarantee jeonse deposit money. As for current trends in the real estate market, Minister Kim noted that people who own more than one unit are selling more often.
Figures released by the ministry showed that the ratio of multi-unit holder sales stood at a monthly average of 29.8 percent during the first six months of last year, but the figure surged to 34.5 percent during the period between July 2017 and April 2018. In particular, the Seoul area saw the figure jump from 31.3 percent to 36.4 percent during the same period, she noted.
The ministry will monitor housing price movements since house price volatility exists, and it will take immediate additional steps if the real estate market shows unstable signs, Kim said. Minister Kim would not elaborate on her views on the scenarios of a tax on real estate holdings being discussed by a special committee on fiscal reform. She reiterated her determination to make sure tax justice on that issue.
Minister Kim’s future policy focus on real estate is about to be on housing welfare. The ministry is in a stage of finalizing follow-steps to the housing welfare roadmap to build 1 million quality units targeting low-income families, she said.