President Lee: "Delays in Third New Town Groundbreaking Are Serious, Procedures to Be Reduced to Less Than Half of 60 Months"

"Regulations Will Be Amended and Procedures Conducted in Parallel to Accelerate Administration"

Temporary Non-Residency Due to Work or Children's Education Considered

"Homes Owned for Residential Purposes Will Be Treated the Same as Primary

On July 23, President Lee Jae-myung addressed delays in the commencement of the Phase 3 new towns and other ongoing housing supply projects, stating, "We are internally reviewing measures to cut down the process, which currently takes over 60 months, to less than half." He announced a plan to dramatically shorten the time from project announcement to actual groundbreaking by carrying out administrative procedures, which have traditionally proceeded sequentially, in parallel where possible, and amending relevant regulations if necessary.

President Lee Jae-myung listens to participants' remarks at the National Public Discussion on Real Estate Policy held on July 23, 2026, at the KBS Annex in Yeouido, Seoul. Photo by Yonhap News Agency

At the 'National Public Discussion on Real Estate Policy' held at the KBS Annex in Seoul that day, President Lee responded to experts' suggestions regarding the need to accelerate the supply of Phase 3 new towns and urban redevelopment projects, saying, "The delays in the start of announced project areas are truly a serious problem," emphasizing his commitment to address the issue.

He further commented, "The speed of administration is far too slow," and added, "If necessary, we will consider changing regulations or proceeding with steps in parallel, rather than sequentially, to save time." This means the government intends to shift away from the conventional approach of progressing step-by-step through various stages—such as site designation, district planning, land compensation, and infrastructure development—towards implementing as many stages in parallel as possible.

This approach is seen as an effort not merely to announce new supply plans, but to focus policy resources on expediting the groundbreaking of already announced Phase 3 new towns and public housing site projects. In his opening remarks, President Lee also pointed out the physical limits of expanding supply, noting, "Even when trying to develop land in Seoul, it is difficult to find available sites."

On the 23rd, participants are requesting the floor at the National Real Estate Policy Public Debate presided over by President Lee Jae-myung, held at the KBS Annex in Yeouido, Seoul. July 23, 2026. Photo by Yonhap News Agency

President Lee also proposed basing the criteria for real estate taxation not on the formal status of actual residence, but on the property's real intended use. He stated, "Even for single-home owners presumed to be actual residents, there are cases where one may temporarily move for work or leave the home vacant for children's education. There have been criticisms of labeling such homes as non-residential if you are not living there at that time." He also shared his own experience of leaving his house vacant due to living in the official presidential residence following his inauguration. President Lee remarked, "In my case, my house is unoccupied because I stay at the presidential residence, but does that make it a non-residential home? Going forward, instead of using the term 'actual residence,' I propose we refer to them as 'residential' or 'for dwelling purposes.' If someone owns a home for residential purposes but is prevented from staying there temporarily due to other circumstances, shouldn't it be treated the same as an actual residence?"

Under the current real estate tax system, the burden of comprehensive property tax and capital gains tax for single-household homeowners varies according to the duration of ownership and residence. However, there have been concerns that those who need to stay elsewhere temporarily—due to work assignments, children's education, illness, or caregiving—may find it difficult to satisfy the actual residence requirements. President Lee’s remarks are interpreted as an intention to strengthen protection for genuine end-users, while signaling that simply relying on resident registration or current occupancy will no longer be the standard for distinguishing between investment/speculative properties and those held for residential purposes.

This content was produced with the assistance of AI translation services.