Governing camp's bigwigs add fuel to speculative fire
The Moon Jae-in administration is going all out to stabilize housing prices, but some glib-tongued bureaucrats and politicians are breeding public distrust in the government's policy.
Rep. Shin Chang-hyun of the ruling Democratic Party of Korea, for instance, went public abruptly last Wednesday with the government's plan to develop land lots in eight places, including the Gyeonggi Province cities of Gwacheon, Ansan and Gwangmyeong, to build and provide 40,000 homes.
The list of candidate sites for massive apartment construction is a confidential matter that should be kept secret until the final decision. Such a piece of information is highly likely to stimulate housing prices and be subject to abuses by speculators. The ruling party lawmaker, however, inadvertently revealed it at a formative stage, prompting related government agencies to probe how the information got out.
Jang Ha-sung, the presidential policy chief, added fuel to the fire. In a broadcast interview the same day, he said, "Not every Korean has to live in the Gangnam area. I know because I live there myself."
Jang might have intended to say the government does not need to focus on some expensive areas (in combating property speculation). However, his remark angered ordinary Koreans, who know a majority of the power elite within this administration is living in the posh district.
Other key officials, including the minister of land, transport and infrastructure, economic deputy premier and head of the ruling DKP, have also put forth incoherent solutions, fanning speculative fervor further. So much so that Prime Minister Lee Nak-yon had to warn related officials, saying, "You'd better coordinate conflicting views before speaking in public."
Nothing is more sensitive and complicated than real estate issues in Korea. As an increasing number of people have a sense of relative deprivation, the situation may produce bitter social strife. This is the time relevant officials should make filtered, consistent remarks. The government must first set up a control tower for property policy and deal with the situation prudently and comprehensively.
As long as the administration continues to flip-flop on housing policy, no amount of intensive countermeasures will win the market's trust.
