Young people, pre-application winners, and the housing supply industry are urging the government to restore the housing ladder that leads to homeownership and unblock supply routes. They are calling for clarity on pre-application loan conditions and the removal of bottlenecks in the approval and financing stages. The government responded by pledging to fulfill existing commitments and to specifically address unreasonable application and loan regulations as well as on-site difficulties.
On July 27, a national discussion on real estate policy was held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, chaired by Prime Minister Han Seong-sook. This meeting was organized to gather additional input from young people, newlyweds, and the supply industry, following a discussion led by President Lee Jae-myung on July 23 that did not fully address their concerns.
A representative from the New Home Sharing and Selection Pre-Application Emergency Response Committee stated, "Homebuyers who have been waiting for government announcements are struggling with contract difficulties due to uncertainties in loan conditions," urging the government to implement the previously announced fixed-rate policy mortgage and confirm key financial conditions before contracts are signed.
Young attendees emphasized the need for a predictable housing ladder that allows for a transition from renting to homeownership, rather than merely providing affordable housing. They also called for reforms to prevent disadvantages in applications and loans due to marriage and life cycle changes.
The supply industry proposed adjustments to legal standards to reduce disputes over non-apartment sales contracts and the introduction of integrated reviews for converting knowledge industry centers into residential officetels. They requested selective financial support, citing difficulties in funding even viable projects due to bridge loans and project financing (PF) constraints.
Minister of Land, Infrastructure and Transport Kim Yoon-deok announced, "We will shift from a sequential to a parallel processing system for approval procedures," adding, "We will significantly shorten approval periods through one-stop support for use changes and integrated reviews."
Regarding the issues faced by pre-application winners, he stated, "The fundamental principle is to accurately implement what the government has promised," and mentioned plans to hold discussions with winners soon to establish specific adjustment measures.
While the government aims to alleviate bottlenecks in supply, it maintains a cautious stance on uniformly relaxing regulations for private redevelopment projects that could stimulate housing prices. Minister Kim explained that indiscriminately increasing private floor area ratios could provoke short-term market instability, emphasizing the need for thorough public discourse and a refined approach.
Prime Minister Han acknowledged the serious concerns of pre-application winners regarding changes in loan conditions and the burdens of interim and final payments, stating, "We will carefully examine on-site difficulties one by one, as directed by the President."
The government has identified 12 cases needing improvement related to the so-called 'marriage penalty,' which disadvantages individuals in applications and loans due to marriage. It is also investigating over 20 proposals submitted on online forums.
Prime Minister Han pledged, "We will boldly address unjust victim cases and regulatory obstacles raised both on-site and online," and promised to develop improvement measures that the public can feel through collaboration with relevant ministries and a one-stop support system.
* This article has been translated by AI.
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