Hong Joonpyo Criticizes Real Estate Policy Debate as "A Show with a Pre-Set Answer"... Calls for Increased Redevelopment and Reconstruction

"Prices Naturally Rise When Supply Falls Short of Demand," Criticism Says

Hong Joonpyo, former mayor of Daegu, criticized the 'National Real Estate Policy Debate' presided over by President Lee Jaemyung.

On July 24, former Mayor Hong wrote on his Facebook, "If the real estate policy debate was held with a predetermined answer, then it is nothing but a show," adding, "The real estate issue is not about the provinces, but about the Seoul metropolitan area—especially Seoul itself. It is only natural that prices rise because supply cannot keep up with demand." He continued, "The root of the issue is that Seoul has no land left while the number of households keeps increasing," and argued, "We should revitalize redevelopment and reconstruction, significantly increase the number of households in city centers by constructing ultra-high-rise buildings, and as the number of single-person households is rising sharply, we should dramatically expand the supply of small housing units."

Former Mayor Hong further pointed out, "It was not the wrong policies of former Seoul Mayor Park Wonsoon, who avoided redevelopment and reconstruction, that brought about the current distortions in the real estate market?" He argued, "The redevelopment and reconstruction process takes more than ten years; administrative procedures should be streamlined to complete it within five years, and the policy to recover excessive gains from redevelopment and reconstruction should be abolished." He then proposed, "Comprehensive real estate tax should only be applied to multiple-home owners, and the property tax for ultra-high-value homes can be levied at a higher marginal rate."

He added, "Raising property-holding taxes across the board amounts to imposing a wealth tax," and noted, "Based on current apartment prices, the three Gangnam districts would all be subject to this, which would lead to strong taxpayer resistance. In particular, the burden will be heavy on pensioners living in the three Gangnam districts."

Previously, President Lee held the 'National Real Estate Policy Debate' at the KBS Annex in Yeouido, Seoul, on July 23, listening to a wide range of opinions regarding finance, supply, and taxation. About 140 people attended, including landlords, first-time homebuyers without property, newlyweds, university students, licensed real estate agents, researchers, professors, YouTubers, online community leaders from "mom cafes," and members of the press.

At the event, President Lee remarked, "Strengthening the property-holding tax—even though it's not really being strengthened, just brought to the typical level of advanced countries—would require tripling it from the current level. But if we triple it, wouldn't that provoke something close to a riot?" He continued, "In truth, this should have been done long ago, but now (housing prices) have already risen too high."

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