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South Korean Minister Hong Ji-seon addresses housing supply and rental market volatility
During a National Assembly audit, South Korean Minister of Land, Infrastructure and Transport Hong Ji-seon stated that the government is preparing measures to respond to various fluctuations in housing prices, including both rapid increases and decreases.
Addressing the shortage of rental properties, Minister Hong identified the primary cause as a decrease in housing supply due to a slowdown in construction starts. While public housing targets are expected to be met, the Minister noted that private sector construction has lagged, prompting a commitment to make up for the deficit next year.
Regarding the rise in monthly rent (wolse) over traditional jeonse leases, the Minister attributed this to structural changes in the market, including an increase in single-person households and the aftermath of jeonse fraud. To alleviate the burden, the government is offering tax deductions for low-income renters and monthly rent support for youth.
Additionally, the Minister pledged to review the fairness of the special housing supply system. This follows criticisms regarding the eligibility of elite athletes and overseas construction workers, who have been able to secure high-end apartments through preferential quotas. The Ministry plans to implement its own verification system to ensure eligibility beyond relying solely on recommending institutions.
Entities
Hong Ji-seon · Hong Ji-sun · Ilsan New Town · LH · Ministry of Land, Infrastructure and Transport · National Assembly · National Assembly of South Korea
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Ministry is preparing countermeasures for both housing price crashes and surges. www.hani.co.kr
- [○ 1 SOURCE] The Ministry is accelerating the redevelopment of first-generation new towns like Ilsan to expand housing supply.
- [○ 1 SOURCE] Seoul housing permits and starts increased by more than 40% from January to August compared to last year. www.hani.co.kr
- [● 2 SOURCES] Minister Hong Ji-sun identified a decrease in housing starts and permits as the cause of rising rental costs. www.hani.co.kr
- [○ 1 SOURCE] The government provides a monthly rent subsidy of up to 200,000 won for youth. www.hani.co.kr
- [○ 1 SOURCE] Approximately 100,000 units of public housing are expected to be occupied in the metropolitan area by the end of next year. www.hani.co.kr
- [○ 1 SOURCE] The shift from Jeonse to monthly rent is a structural change driven by rising single-person households and Jeonse fraud. www.hani.co.kr
- [○ 1 SOURCE] Renters with an annual income below 80 million won can receive tax deductions of 15 to 17 percent on monthly rent, up to a limit of 10 million won per year. www.hani.co.kr