Hong Ji-sun, the Minister of Land, Infrastructure and Transport, stated that achieving the housing construction goal for the capital region this year is unlikely to reach 100%. She noted that demand regulation is unavoidable until housing supply is fully realized.
During a National Assembly audit on October 7, Minister Hong responded to a query from lawmaker Jeong Hee-yong of the ruling People Power Party, who pointed out that the actual housing construction in the capital region is significantly below the government's target. "It is true that the performance is lower than initially planned by the state," she said.
The government set a housing construction target of 268,000 units for the capital region this year, but as of August, only 86,739 units had begun construction, representing just 32.4% of the annual goal.
Minister Hong acknowledged, "Typically, a significant amount of construction occurs in the fourth quarter, as seen in the previous two years," but added, "Based on this year's statistics and planned figures, it will be difficult to secure 100% of the planned amount. I believe we can achieve about 80% to 88%."
She also discussed the necessity of demand suppression policies, including loan regulations. "To overcome the gap caused by a shortage of supply over the next two to three years, we are continuously pushing for an increase in supply," she said, adding, "Until supply is adequately addressed, some degree of demand regulation is inevitable."
Regarding comments made last month by Lee Seong-hoon, president of the Korea Land and Housing Corporation (LH), who stated that loan regulations are necessary due to the time lag in housing supply, Minister Hong clarified, "That was a statement made in a general sense." She further explained that loan regulations cannot be implemented solely by the Ministry of Land and must be coordinated with the Financial Services Commission and tax authorities.
On the visible outcomes of the government's supply measures, she announced that the occupancy of the third new towns is set to begin at the end of this year. In response to a question from lawmaker Jeong Il-young of the Democratic Party, she stated, "Households will start moving into the third new towns from the end of this year," and assured that management will continue from the Gyeyang district.
Regarding housing supply discussions with Seoul City, she expressed a commitment to prioritize agreed-upon matters. Minister Hong said, "In a recent meeting with Seoul Mayor Oh Se-hoon, we discussed that we would proceed with the agreed-upon matters between the city and the ministry first," and added that practical negotiations would continue.
On the issue of linking the Yongsan Park and Tancheon water recycling center, she emphasized, "We are not negotiating by exchanging individual issues one by one," and clarified, "Yongsan Park should be addressed through Yongsan Park Road, and Tancheon through Tancheon Road." She noted that utilizing the site of the Tancheon water recycling center would take considerable time, as it requires relocating the sewage treatment plant to another area first.
* This article has been translated by AI.
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