By Yoon Ja-young
The government is analyzing data on owners of multiple homes to press them to register as home leasing businesses. It will continue tackling real estate speculators while emphasizing public welfare in housing policies, according to the land minister.
“The real estate policies announced on Aug. 2 succeeded in cooling off the overheated market and setting up a foundation for stabilization,” Land, Infrastructure and Transport Minister Kim Hyun-mee said at a meeting with the media, Thursday.
Since her June inauguration, the heavyweight lawmaker of the ruling party has vowed to fight real estate speculation and stabilize the market. She made it clear the Moon Jae-in administration will be different from previous administrations which often stimulated the housing market as a means of pulling up the economic growth rate.
The Aug. 2 measures are regarded as some of the strongest anti-speculation policies ever, levying heavy taxes on capital gains of those who own multiple homes and restricting mortgages.
The minister, however, said it is not enough.
“I have never forgotten the biggest priority for the land minister is to stabilize housing. Though the Aug. 2. measures somewhat cooled off speculation, I think we still have a long way to go to change the housing market, considering those suffering without homes or sacrificing their future due to concerns over housing.”
The government’s next step is to bring owners of multiple homes under government control when they put their homes up for lease. Among the country’s 19.1 million households, 43 percent are estimated to be residing in homes they rent. The minister pointed out only a handful of owners of multiple homes have officially registered themselves as leasing businesses.
The minister said those not registered as leasing businesses are not subject to any regulations. Those officially registered as leasing business, meanwhile, cannot raise rent more than 5 percent and they also pay taxes on their income from rent.
The government is currently piling up data on owners of multiple homes to “transparently look into the leasing market,” according to the minister. On top of levying heavier taxes on owners of multiple homes, the government plans to expand the supply of public rental housing. The minister said the supply will total 650,000 over the next five years.
She also said the benefit for the public should be a priority in transportation policies. The tolls for private highways will be lowered by inducing investment by state-run entities, and the Great Train Express (GTX) will be built to ease traffic congestion during rush hour.
The minister also stressed transport safety. The government is preparing measures to improve road conditions outside of major cities while replacing old components in railways.
Exporting smart cities will also be among the ministry’s top priorities, along with inducing construction companies to advance into overseas markets.
“Proceeds from overseas construction worked as seed money for Korea’s economic development. It needs another leap forward as a key growth engine,” the minister said.
The government plans to set a state-run entity specializing in overseas infrastructure and urban development.