First Public Forum on Real Estate: Proposals for Expanding Housing Supply and Easing Regulations

Experts from various fields shared a wide range of opinions on key issues such as housing supply and regulations during the first public forum held to listen to citizens' views on real estate policy.

The Ministry of Land, Infrastructure and Transport hosted the "Public Forum on Housing Supply Expansion" this afternoon (July 14), chaired by Minister Kim Yoon-duck and attended by approximately 60 people, including ministry officials, academics, industry representatives, and citizens.

Jin Mi-yoon, a professor at Myongji University, pointed out, "Current housing supply is experiencing significant bottlenecks during the construction commencement process," adding that "the housing supply pipeline must be restored."

She further suggested measures including financial and tax support, revitalization of urban renewal projects, easing of architectural regulations, deliberation on the entities and methods for rental housing supply, and alleviating the burden of housing costs.

Opinions were also raised that support for non-apartment housing is necessary to ensure rapid housing supply.

Kim Duck-rye, a senior research fellow at the Korea Housing Institute, stated, "The biggest reason why project sites are currently stalled is that they are designated as regulated areas, which significantly reduces the Loan-to-Value (LTV) ratio and creates major lending constraints," adding, "We must resolve this and promptly create funds and guarantee products for non-apartment housing."

Citizens involved in private redevelopment and reconstruction projects appealed that it has become difficult to secure relocation funds due to loan regulations.

Kim Myung-hee, head of the Singil District 2 committee, an urban complex development project site, pointed out, "There are no financial institutions willing to provide relocation loans, putting many project sites at risk of delayed relocation," and added, "It is a contradiction for the government to call for rapid supply while blocking the necessary funding."

Regarding the designation of regulated areas and land transaction permit zones, which the government implemented to calm market overheating, opinions clashed between those calling for a review due to side effects and those arguing that such measures are necessary for price stability.

Kim Hyo-sun, a senior real estate expert at KB Kookmin Bank, argued, "Because regulations are applied in a package, Gangnam-gu in Seoul and Giheung-gu in Yongin, Gyeonggi Province, are subject to the same regulations," and added, "It is difficult to sell a property without evicting the tenant, and the supply of jeonse (lump-sum housing lease) properties for older buildings is also decreasing, leading to unintended conflicts between policies that require a review."

On the other hand, Choi Eun-young, director of the Korea Center for City and Environment Research, said, "While housing supply is important, price stability is also extremely important," and added, "When the Seoul Metropolitan Government lifted land transaction permit zones in 2025, the average price of apartments in Seoul exceeded 1.4 billion won in the first quarter, so the side effects that may occur when lifting regulated areas must also be sufficiently considered."

Today's forum was conducted in a format where only the attendees expressed their opinions, without intervention or remarks from Ministry of Land, Infrastructure and Transport officials.

Starting today, the government plans to continue collecting public opinion by holding a housing finance forum hosted by the Financial Services Commission tomorrow, and a real estate tax forum hosted by the Ministry of Economy and Finance the day after tomorrow, before continuing the discussions at a national public forum presided over by the President on July 23.

(Photo: Provided by the Ministry of Land, Infrastructure and Transport, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.