Reporter Park Jong-min
The Yoon Seok-yeol administration’s first housing supply plan, which had been postponed once due to heavy rain, will be released on the 16th.
The government is scheduled to announce the so-called ‘2.5 million + α housing supply plan’ following holding a ‘real estate-related ministerial meeting’ presided over by Choo Kyung-ho, deputy prime minister for economy and minister of Strategy and Finance this morning.
As the expression ‘2.5 million + α’ shows, the first attention is focused on the large-scale supply, but the bigger interest is the supply method.
As the Yun Seok-yeol administration declared ‘private-centered’ as the main economic policy, it is expected that the private sector will be more important than the public in terms of housing supply.
It is in the same vein that there is a forecast that a significant easing of regulations related to private housing supply will be the main content of this measure.
Of particular note in this regard is the ‘re-return’, that is, the ‘reconstruction excess profit recovery system’.
Re-retirement is a system in which up to 50% of a member’s development profit is expected to be generated as a tax return by evaluating the housing price before and following the reconstruction project.
Some have pointed out that the redemption rate is the biggest obstacle to the private reconstruction project, saying, “The standard of profit exempt from redemption is low at 30 million won, while the redemption rate is too high at up to 50%.”
Minister of Land, Infrastructure and Transport Won Hee-ryong answers questions from lawmakers during the plenary session of the Land, Infrastructure and Transport Committee held at the National Assembly on the 1st. Reporter Park Jong-min
Minister Won Hee-ryong of the Ministry of Land, Infrastructure and Transport appeared on CBS’ ‘Kim Hyun-jung’s News Show’ on the 19th of last month and formalized for the first time the Yoon Seok-yeol administration’s reorganization policy, saying, “We will find a suitable line and include it in the housing supply measures in August.”
As for the direction of the reorganization, a plan to significantly raise the standard for exempting development profits, which is currently less than 30 million won, to the level of 100 million won or less is highly discussed.
In addition, it is reported that a plan to lower the redemption rate, which is applied differentially from 30 million won to 110 million won, by 10 to 50 percent, depending on the size of the profit is being considered.
In addition to the easing of re-entry regulations, it is expected that the first stage of the reconstruction project, the easing of safety inspection regulations, will be included in this measure.
During the last presidential election, President Yoon Seok-yeol pledged to lower the structural safety ratio, which has a decisive influence on the passing of safety examinations, from 50% to 30%, and to raise the residential environment ratio from 15% to 30%.